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Questions 1 and 2 refer to the following information: X Company is considering buying a part in 2020 t Considering buying a part in 2020

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Questions 1 and 2 refer to the following information: X Company is considering buying a part in 2020 t Considering buying a part in 2020 that it made in 2019. For 2020, the budgeted production cost function is 39.63X + $20,400, where X is the number of units produced. A company has offered to supply this $12.86 per unit. If X Company accepts the offer, it will avoid fixed costs of $10,812, but it w amber of units produced. A company has offered to supply this part to X Company for accepts the offer, it will avoid fixed costs of $10,812, but it will not be able to do anything TS resources that were used to produce the art In 2010 2.400 units of the part were produced; in 2020, 3,500 will be needed 8 pt 1. If X Company makes the part in 2020 instead of buying it, it will save 1. AO $827 BO $1,099 CO $1.462 DO $1,941 EO $2,686 FO 83,440 8 pt 2. At what production level would X Company be indifferent between making and buying the part in 20207 2. AO 2,517 BO 3,317 CO 4,452 DO 5,921 EO 7,875 FO 10,474 Questions 3 and 4 refer to the following information: X Company is considering buying a part in 2020 that it has been making for the past several years. A company has offered to supply this part for $17.26 per unit. Budgeted production in 2020 is 56,000 units, and budgeted per-unit production costs are: Materials S6.20 Direct labor (all variable) 5.60 Total overhead 5.40 Total $17.20 $100,800 of X Company's total overhead costs are fixed; $79,632 of the $100,800 are unavoidable even if it buys the part Also, if X Company buys the part, it can rent the equipment that was used to make the part to another company for $70,000 8 pts. If X Company continues to make the part instead of buying it, it will save 3. AO $8,112 BO 89,491 CO $11,104 DO $12,992 EO $15,201 FO $17,785 8 pt. At what production level would X company be indifferent between making and buying the part? 4. AO 49,015 BO 55,387 CO 62,587 DO 70,721 EO 79,918 FO 90,307

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