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Questions 12 and 13 refer to the following information: considering buying a part in 2019 that X Company currently makes. Production costs in 2018, when
Questions 12 and 13 refer to the following information: considering buying a part in 2019 that X Company currently makes. Production costs in 2018, when production was 3,100 units were: Per-Unit Total Direct materials $3.22 $9,982 Direct labor 3.97 12,307 Variable overhead 2.50 7,750 Fixed overhead 3.10 9,610 Total $12.79 $39,649 they buy the part. But if X Company buys A company has offered to supply this part for $13.54 per unit. $4,036 of X Company's fixed overhead are allocated costs that will occur even the part, be 3,400 units. can rent out the freed-up resources for $2,600. Production in 2019 is expected 12. If X Company continues to make the part instead of buying it, it will save Submit Answer Tries 0/3 13. At what production level would X Company be indifferent between making and buying the part? Submit Answer Tries 0/3
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