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Course Contents >> EXAM 2 > Question 2 Timer Notes Evaluate Feedback Print X Company is considering buying a part next year that they currently

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Course Contents >> EXAM 2 > Question 2 Timer Notes Evaluate Feedback Print X Company is considering buying a part next year that they currently make. This year's total production costs for 99,000 units of this part were: Materials $625,680 Direct labor 444,510 Variable overhead 403,920 Fixed overhead 196,020 Total $1,670,130 A company has offered to supply this part for $15.44 per unit. If X Company buys the part, $103,891 of the total fixed overhead is unavoidable, and there is no alternative use of the resources that will become idle. Production next year Is expected to be 94,500 units. If X Company buys the part instead of continuing to make it, It will save A: $16,447 OB: $20,559 C: $25,699 OD: $32,124 )E: $40,154 OF: $50,193

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