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Questions 2 and 3 refer to the following information: X Company currently buys a part from a supplier for $13.47 per unit but is considering
Questions 2 and 3 refer to the following information: X Company currently buys a part from a supplier for $13.47 per unit but is considering making the part itself next year This year, they purchased 3,200 units of this part. Estimated costs to make the part are: Per-Unit Total Direct materials Direct labor Variable overhead Fixed overhead Total $3.11 3.83 4.30 4.10 $15.34 S9,952 12,256 13,760 13,120 $49,088 Of the estimated fixed overhead, $4,986 are com fixed overhead costs. X Company currently rents unused factory space to a tenant for $2 to make the part. mon costs that would be allocated to the part; the rest would be additional ,300; it will have to use this space p2 If X Company will need 3,200 umits again next year and contimues to buy the part instcad of mak 2. If X Company will need 3,200 units again next year and contimues to buy the part instead of making it, it will save AO s3.208 2. $3,727 c0 $4,212 DO s4,759 EO, ss378 PO s6.077 8 pt 3 X Company is somewhat uncertain how many units of the part it will need next year. How many units would make the company indifferent between continuing to buy the part and making it? 3. AO 3,999 BO 4,679 CO 5,475 DO 6,405 EO 7,494 FO 8,76s 8 pl X Company currently makes a part and is considering buying it next year from a company that has offered to supply Thir rear total costs to produce 53,000 units were
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