Present Value of $1.00 Present Value of an Annuity of $1.00 Period 1 2 0 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 .943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.659 0.636 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0.507 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.482 0.452 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.434 0.404 Period 3% 4% 5% 6% 1 0.971 0.962 0.952 0.943 2 1.913 | 1.886 1.859 1.833 3 2.829 2.775 2.723 2.673 4 3.717 3.630 3.546 3.465 5 4.580 4.452 4.329 4.212 6 5.417 5.242 5.076 4.917 7 6 .230 6.002 5.786 5.582 | 8 7.020 6.733 6.463 6.210 7% 8% 9% 0.935 0.926 0.917 1.808 1.783 1.759 2.624 2.577 2.531 3.387 3.312 3.240 4.100 3.993 3.890 4.767 4.623 4.486 5.389 5.206 5.033 5.971 5.747 5.535 10% 11% 12% 0.909 0.901 0.893 1.736 1.713 1.690 2.487 2.444 2.402 3.170 3.102 3.037 3.791 3.696 3.605 4.355 4.231 4.111 4.868 4.712 4.564 5.335 5.146 4.968 7 8 X Company is considering buying a part next year that they currently make. This year's production costs for 3,400 units were as follows: Direct materials Direct labor Variable overhead Fixed overhead Total Per-Unit $2.71 3.83 4.50 4.40 $15.44 Total $9,214 1 3,022 15,300 14,960 $52,496 A company has offered to supply this part to X Company for $14.36 per unit. If X Company accepts the offer, it will still incur fixed costs of $7,031, but it will be able to lease the resources that will become available from not making the part for $2,600. At what production level would X Company be indifferent between making and buying the part next year? A: 2,187 B: 3,171 C: 4,598 D: 6,668 E: 9,668 OF: 14,019 Submit Answer Tries 0/99