Your company makes BBQ$\text{'}$s from scratch $-$ that is to say, you currently make all of the components for the BBQ$\text{'}$s from their raw materials $($sheet metal, paint, nuts & bolts, etc.$)$

Component $"$A$",$ of which you make $3,000$ units per month, costs you $$28\mathrm{.}00$ in variable costs per unit and $$12\mathrm{.}00$ per unit in fixed costs, for a total cost of $$40$ per unit based on the $3,000$ units per month and your latest accounting records.

A supplier has offered to sell you $3,000$ units per month of component $"$A$"$ for $$31\mathrm{.}00$ per unit. Should you accept?

Question $37$ options:

No$,$ don't accept the offer. You cannot save the fixed costs even though your variable costs will be eliminated.

Yes. You will save $$9($i$.$e$.40-31=9)$ per unit by accepting the offer from the supplier

Cannot answer this question without further examination of what fixed costs can be shed if the offer is accepted