Questions 1 and 2 refer to the following problem: X Company is considering buying a part next year that they currently make. This year's production costs for 10,000 units of this part were: Total Per-Unit Materials $37,700 $3.77 Direct labor [all variable] 47,700 4.77 Variable overhead 35,000 3.50 Fixed overhead 33,000 3.30 A company has offered to supply this part for $14.43 per unit. If X Company buys the part, $7,260 of the fixed overhead can be avoided. Also, if X Company buys the part, it can use the freed-up resources to increase production of another product, resulting in additional contribution margin of $2,700. Production next year is expected to be the same as this year. 1. The costs of making the part are less than the costs of buying the part by Submit Answer Tries 0/3 2. (ONE TRY ONLY) X Company is uncertain what next year's required production will be. At what production level will X Company be indifferent between making and buying the part? A: 4,167 B: 4,876 C: 5,705 D: 6,675 E: 7,809 F: 9,137 Submit Answer Tries 0/1