18. Quarantine Company manufactures Part AA for use in its production cycle. The costs per unit for 25,000 units for the part are as follows: Direct materials P 7.50 Direct labor 37.50 Variable...

Extracted text: 18. Quarantine Company manufactures Part AA for use in its production cycle. The costs per unit for 25,000 units for the part are as follows: Direct materials P 7.50 Direct labor 37.50 Variable overhead 15.00 Fixed overhead 20.00 Lockdown Company has offered to sell Quarantine the 25,000 units needed by the latter for P75 per unit. If Quarantine accepts the offer, the released facilities could be used to save relevant costs amounting to P112,500 in the manufacture of another part. In addition, P12.50 per unit of fixed overhead applied to part AA would totally eliminated. What alternative is more desirable and by what amount it is more desirable? А. Buy – P50,000 В. Make – P50,000 С. Buy – P262,500