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1. If X Company buys the part next year instead of making it, and production is expected to remain at 3,100 units, it will save
1. If X Company buys the part next year instead of making it, and production is expected to remain at 3,100 units, it will save
2. If X Company buys the part next year instead of making it, and production next year is expected to be 3,500 units, it will save
X Company is considering buying a part next year that it currently makes. The budgeted cost function to produce the part is $11.01X+ $18,600, where X is the number of units produced. A company has offered to supply this part to X Comany it for $13.34 per unit. If X Company chooses to buy the part, it will still incur fixed costs of $9,300, but it will be able to lease the resources that will become available from not making the part for $2,500. 1. If X Company buys the part next year instead of making it, and production is expected to remain at 3,100 units, it will saveStep by Step Solution
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