Questions X Company is considering buying a part next year that they currently make. A company has offered to supply this part for $15.65 per unit. This year's production costs per unit for 51,000 units were:

Direct materials	$6.60
Direct labor	4.10
Total overhead	5.10
Total	$15.80

Of the total overhead costs, $91,800 were fixed, and $67,014 of these fixed overhead costs are unavoidable. If X Company buys the part, the resources that were used for production can be rented to another company for $80,000. Production next year is expected to increase to 55,650 units. 4. If X Company buys the part instead of making it, it will save

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5. Assume that X Company has an opportunity to negotiate the purchase price with the supplier. What purchase price would make X Company indifferent between making and buying?