2-Survey of Accounting Concepts Name: X Company spent $6,500 on an engineering study that revealed that Produet A could be manafactured more resulting i variable costs per unit are 3.91, and current fixed costs are $10,590. The current selling price is $11.70. X Company's operations manager is uncertain what next year's production requirement will be. How many requsired units would make X Company indifferent between adopting the new process and not adopting it? 1. AO 3,757 B 4,245 CO4797 DO 5,421 EO 6,125 ro 6,922 in variable cost savings of $0.51 per unit. However, there would be an increase in fixed costs of $3,630 Currs Questions 2 and 3 refer to the following information: X Company currently buys a part from a supplier for $14.24 per unit but is considering making the part ltelf sext This year, they purchased 3,300 units of this part. Estimated costs to make the part are Per-Unit $3.92 Direct materials Direct labor Variable overhead Fixed overhead Total $12,936 13,200 13,860 17,490 $57,486 5.30 $17.42 Of the estimated fixed overhead, $6,296 are common costs that would be allocated to the part; the rest would be additional X Company currently rents unused factory space to a tenant for $2,100; it will have to use this space to make the part. pt 2. If X Company will need 3,300 units again next year and continues to buy the part instend of making it, t will ave AO$3,932 8 BO $4,600 cOss,383 DO s6298 EJ$7,368 FOs8,621 2. 8 pt 3. X Company is somewhat uncertain how many units of the part it will need next year. How many units would make e company indifferent between continuing to buy the part and making it? 3. AO 3,403 BO 3,846 CO 4346 DO 4,911 EO 5,349 FO 6271 8 ptX Company currently makes a part and is considering buying it next year from a company that has offered to supply $342,200 249,400 237,800 81,200 it for $16.25 per unit. This year, total costs to produce 58,000 units were Direct materials Direct labor Variable overhead Fixed overhead If X Company buys the part, it can avoid $32,480 of the fixed overhead. The resources that will become idle if they choase The marketing manager is uncertain what demand will be next year. What level of demand will make the company indiferent etween making the part and buying it? o buy the part can be used to increase production of another product, resulting in additional total econstribution margla of 65,000 AO 44,239 BO 49,990 CO 56,488 DO 63,832 EO 72,130 FO 81,507