Goldwater Company Manufactures a Part for Its Production Cycle The Fixed Factory Overhead Costs Are Unavoidable

Goldwater Company manufactures a part for its production cycle. The costs per unit for 10,000 units of this part are as follows: $\begin{array}{lc}\text { Direct materials } & \$ 20 \\\text { Direct labor } & 15 \\\text { Variable factory overhead } & 16 \\\text { Fixed factory overhead } & \underline{10} \\\text { Total costs } & \$ \underline{161}\end{array}$ The fixed factory overhead costs are unavoidable. Assume that Goldwater Company can buy 10,000 units of the part from another producer for $56 each. The current facilities could be used to make 10,000 units of a product that has a contribution margin of $20 per unit. No additional fixed costs would be incurred. Goldwater Company should:

A) continue to make the part to earn an extra $5 per unit contribution to profit
B) make the new product and buy the part to earn an extra $15 per unit contribution to profit
C) make the new product and buy the part to earn an extra $5 per unit contribution to profit
D) continue to make the part to earn an extra $15 per unit contribution to profit