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8 ptX Company currently makes a part and is considering buying it next year from a company that has offered to supply it for $14.12
8 ptX Company currently makes a part and is considering buying it next year from a company that has offered to supply it for $14.12 per unit. This year, total costs to produce 51,000 units were: Direct materials Direct labor Variable overhead Fixed overhead $290,700 204,000 132,600 81,600 If X Company buys the part, it can avoid $24,480 of the fixed overhead. The resources that will become idle if they choose to buy the part can be used to increase production of another product, resulting in additional total contribution margin of $70,000 The marketing manager is uncertain what demand will be next year. What level of demand will make the company indifferent between making the part and buying it? 4. AO 17,01 i BO 21,263 CO 26,579 DO 33,224 EO 41,530 FO 51,912
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