considering whether or not to make a key part for one of its kayak models. Its projected total requirement for the part is 15,000 units, and a trusted supplier can make the part for $25 per unit. Donald Biden, the owner, estimates that the purchase contract will cost $250 to prepare, and if Pearson made the part in-house, additional investment in equipment would cost $30,000; the variable cost for the part would be $14 per unit. Help Donald to determine the cost of buying.

Answer choices:

$240,000

$200,000

$300,000

$375,000