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considering buying a part in 2020 that it has been making for the past several years. A company has offered to supply this part for
considering buying a part in 2020 that it has been making for the past several years. A company has offered to supply this part for $15.15 per unit. Budgeted production in 2020 is 52,000 units, and budget .15 per unit. Budgeted production in U2U 15 62,000 units, and budgeted per-unit production costs are: Materials $6.00 Direct labor (all variable] 4.20 Total overhead 4.80 Total $15.00 $93.600 of X Company's total overhead costs are fixed; 560,840 of the $93,600 are unavoidable even if it buys the part. Also, if X Company buys the part, it can rent the equipment that was used to make the part to another company for $70,000. 8 pts. If X Company buys the part instead of making it, it will save 3. AO $1,360 BO $1,700 CO 82,125 DO 82,656 EO 83,320 FO 84,150 8 pt. At what production level would X company be indifferent between making and buying the part? 4. AO 21,036 BO 28,122 CO 32,903 DO 38,496 EO 15,041 FO 62,607
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