Assume Star Appliance Can Purchase 8,000 Units of the Part

Assume Star Appliance can purchase 8,000 units of the part from the Roger Parts Company for $17.50 each, and the facilities currently used to make the part could be used to manufacture 8,000 units of another product that would have a $5 per unit contribution margin. If no additional fixed costs would be incurred, what should Star Appliance do?

A) Make the new product and buy the part to earn an extra $8.50 per unit contribution to profit.
B) Make the new product and buy the part to earn an extra $5.50 per unit contribution to profit.
C) Continue to make the part to earn an extra $0.50 per unit contribution to profit.
D) Continue to make the part to earn an extra $2.50 per unit contribution to profit.