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Questions 1 and 2 refer to the following information: X Company is considering buying a part next year that it currently makes. This year's production

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Questions 1 and 2 refer to the following information: X Company is considering buying a part next year that it currently makes. This year's production costs for 3,500 units were: Per-Unit Total Direct materials $2.49$8,715 Direct labor Variable 2.60 overhead Fixed overhead Tota $14.46 $50,610 4.67 16,345 9,100 16,450 A company has offered to supply this part for $13.66 per unit. $8,225 of X Company's fixed overhead are allocated costs that will occur even if they buy the part. But if X Company buys the part, it can rent out the freed-up resources for $2,100. Production next year is expected to be 3,800 units 1. If X Company continues to make the part instead of buying it, it will save Submit AnswerTries 0/3 2. At what production level would X Company be indifferent between making and buying the part? Submit Answer Tries 0/3

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