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Number 3 Please X Company is considering buying a part next year that they currently make. This year's per-unit production costs for 3,200 units were:
Number 3 Please
X Company is considering buying a part next year that they currently make. This year's per-unit production costs for 3,200 units were: A company has offered to supply this part for $15.33 per unit. If X Company buys the part, $8,422 of the fixed overhead can be avoided. Also if X Company buys the part, it can use the freed-up resources to increase production of another product, resulting in additional contribution margin of $2,400. Production next year is also expected to be 3,200 units. If X Company buys the part instead of making it, it will save $3,270 At what production level would X Company be indifferent between making and buying the partStep by Step Solution
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