should ABC make or buy the component part?

QUESTION 7 ABC Company is currently making a component part with direct materials costs of $10, direct labor costs of $15, variable ov costs of $5. They are considering buying the component part from an external supplier for a price of $30. Shipping costs wo be incurred either way, should ABC make or buy the component part? a. Make, because the cost to make of $40 is cheaper than buying. b. Buy, because the cost to buy of $42 is cheaper than making. c. Buy, because the cost to buy of $37 is cheaper than making. d. Make, because the cost to make of $35 is cheaper than buying. ly making a component part with direct materials costs of $10, direct labor costs of $15, variable overhead costs of $10, and fixed overhead sidering buying the component part from an external supplier for a price of $30. Shipping costs would be $7. If fixed overhead costs would hould ABC make or buy the component part? cost to make of 540 is cheaper than buying: pst to buy of $42 is cheaper than making. st to buy of $37 is cheaper than making. tost to make of $35 is cheaper than buying