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Please answer both parts The following information is for Questions 1 and 2 X Company is considering buying a part next year that it currently
Please answer both parts
The following information is for Questions 1 and 2 X Company is considering buying a part next year that it currently makes. The budgeted cost function to produce the part is $10.99X+ $12,000, where X is the number of units produced. A company has offered to supply this part to X Comany it for $13.38 per unit. If X Company chooses to buy the part, it will avoid fixed costs of $4,800, and it will be able to lease the resources that will become available rom not making the part for $2,400. 1. If X Company buys the part next year instead of making it, and production is expected to remain at 3,000 units, it will save Tries 0/99 2. If X Company makes the part next year instead of buying it, and production next year is expected to be 3,300 units, it will save Tries 0/99Step by Step Solution
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