10:54 1 $3.lite.msu.edu survey of ACcounting Concepts Main Menu Contents Grades Course Contents .. SECOND CHANCE Timer Notes Evaluate Feedback Print ! Questions 3 and 4 refer to the following information: X Company is considering buying a part next year that it currently makes. A company has offered to supply this part for $18.70 per unit. This year's total production costs for 58,000 units were Materials $394,400 Direct labor Total overhead 307,400 342,200 $249,400 of X Company's total overhead costs were variable; $15,660 of X Company's fixed overhead costs can be avoided if it buys the part. If X Company buys the part, there are no alternative uses of the resources that were used for its production. Production next year is expected to increase to 61,900 units. 3. If X Company continues to make the part instead of buying it, it will save Submit Answer Tries 0/3 4. X Company has an opportunity to negotiate the purchase price with the supplier. What purchase price would make X Company indifferent between making and buying? Submit Answer Tries 0/3 Communication Blocked Send Feed back