Main Menu Contents Grades C Course Contents >> EXAM 2 >> Question 1 X Company currently makes a part and is considering buying it next year from a company that has offered to supply it for $14.45 per unit. This year, total costs to produce 68,000 units were: Direct materials Direct labor Variable overhead Fixed overhead $394,400 299,200 238,000 340,000 If X Company buys the part, $44,200 of the fixed overhead is avoidable. 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 $15,000. The marketing manager estimates that demand next year will increase to 72,700 units. If X Company buys the part instead of making it, it will save C: $2,992 OD: $3,740 E: $4,675 OF: $5,844 OA: $1,915 Submit Answer B: $2,394 Tries 0/99 Main Menu Contents Grades C Course Contents >> EXAM 2 >> Question 1 X Company currently makes a part and is considering buying it next year from a company that has offered to supply it for $14.45 per unit. This year, total costs to produce 68,000 units were: Direct materials Direct labor Variable overhead Fixed overhead $394,400 299,200 238,000 340,000 If X Company buys the part, $44,200 of the fixed overhead is avoidable. 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 $15,000. The marketing manager estimates that demand next year will increase to 72,700 units. If X Company buys the part instead of making it, it will save C: $2,992 OD: $3,740 E: $4,675 OF: $5,844 OA: $1,915 Submit Answer B: $2,394 Tries 0/99