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quesitons 1 and 2. X Company is considering buying a part in 2022 that it currently makes. The budgeted cost function to produce the part

quesitons 1 and 2. image text in transcribed
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X Company is considering buying a part in 2022 that it currently makes. The budgeted cost function to produce the part is $9.87X + $15,750, where X is the number of units produced. A company has offered to supply this part to X Company for $12.41 per unit. If X Company chooses to buy the part, it will still incur fixed costs of $5,985, but it will be able to sell some of the equipment that it used to make the part for $2,900. In 2021, 3,500 units of the part were produced; in 2022, 4,000 units will be needed.


1. If X Company buys the part in 2022 instead of making it, it will save


2. At what production level would X Company be indifferent between making and buying the part in 2022?

X Company is considering buying part in 2022 that it current as the budgeted construction to produce the partis 1.7515,750, where the produced. Acum sodbo wupply this part to company for $1241 per unit X Company cho buy the part wc fed cuts o 55.085. but it will be able to me that used to make the part for 12.900. In 2001, 2.sons of the part were produced in 2022, 4,000 will be needed 1.1 X Company has the part in 2022 tead of making it will save w tries to 2. At that production Cameron Ding and buying the part 2022 X Company sondering buying part 2022 that it only the bed cost function is produce the part 99.87* $15.50 offered to supply the part to X Company for $12.41 per company has to buy the part incur fod 5.685, used to make the part for $2.500 A 2031. 3.500 of the part ware duced in 2022 4.000 de 1 x Cumany up the part in 2022, 2. At What Wout company terming and by the path 2002 X Company is considering buying part in 2022 that it current as the budgeted construction to produce the partis 1.7515,750, where the produced. Acum sodbo wupply this part to company for $1241 per unit X Company cho buy the part wc fed cuts o 55.085. but it will be able to me that used to make the part for 12.900. In 2001, 2.sons of the part were produced in 2022, 4,000 will be needed 1.1 X Company has the part in 2022 tead of making it will save w tries to 2. At that production Cameron Ding and buying the part 2022 X Company sondering buying part 2022 that it only the bed cost function is produce the part 99.87* $15.50 offered to supply the part to X Company for $12.41 per company has to buy the part incur fod 5.685, used to make the part for $2.500 A 2031. 3.500 of the part ware duced in 2022 4.000 de 1 x Cumany up the part in 2022, 2. At What Wout company terming and by the path 2002

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