please help, it's not b

The AHC Company had two options for sourcing molded plastic parts, and these options are presented in the table below. Now, the ABC Company has identified another potential supplier for the molded plastic parts. The new supplier has bid $0.0900 per part but also will impose a shipping and handling charge of $0.0250 per unit. Additional inventory handing charges should amount to $0.0090 per unit. Finally, purchasing costs are estimated at S5 per month for the length of the 36-month contract. Note that the forecasted demand is a total of 1 milion units over the 36 months B Click the icon to view the total cost analysis for the sourcing decision at ABC. a. The total cost per unit for the new supplier is $ 0.1242. (Enter your response rowided to four decimal places) The outsourcing antion with the new supplier is cheaper than insourcing b. Suppose the three-year volume is expected to rise to 1.5 million, rather than 1 million, molded plastic parts The total cost per unit associated with insourcing is now $ 0.2501. (Enter your responses rounded to four decimal aces.) What explains the difference? A More Info O A. The difference in cost per unit is explained by the larger volume absorbing the faced equipment depreciation and engineering design costs." B. The difference in cost per unit is explained only by the larger volume absorbing the fixed engineering design costs." O c. The difference in cost per unit is explained only by the larger voluire absorbing the fixed equipment depreciation." OD. None of the above. Insourcing option Operating Expenses Direct labor Benefits (50%) Direct material Indirect labor Benefits (50%) Equipment depreciation Overhand Engineering design costs Total cost per unit Outsourcing option Purchase price Shipping and handling Inventory charges Administrative costs Total cost per unit Savings per unit Total savings (1 milion units) $0.0800 $0.0400 $0.0300 $0.0067 30.0034 $0.0050 $D.OBOD 30.0400 $0.2651 $5,000 absorbed over 1,000,000 units $40,000 absorbed over 1,000,000 units $0.1500 $0.0060 30.0010 30.0010 $0.1580 $0.1071 S107,100 Print Done Click to select your answer and then click Check