Teich Inc. is considering whether to continue to make a component or to buy it from an outside supplier. The company uses 15,000 of the components each year. The unit product cost of the component is given as follows:

Direct materials ............................................... $7.90

Direct labor...................................................... 2.10

Variable manufacturing overhead .................. 1.10

Fixed manufacturing overhead ....................... 4.00

Unit product cost ...........................................$15.10

Assume that direct labor is a variable cost. Of the fixed manufacturing overhead, 10% is avoidable if the component were bought from the outside supplier; the remainder is not avoidable. In addition, if the components are purchased the facilities that are being used to make the component can be leased to another company for $30,000 per year. When deciding whether to make or buy the component, what cost of making the component should be compared to the price of buying the component?

A) $13.50

B) $11.50

C) $16.10

D) $15.10