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The following information is for Questions 1 and 2 X Company is considering buying a part next year that it currently makes. The budgeted cost
The following information is for Questions 1 and 2 X Company is considering buying a part next year that it currently makes. The budgeted cost function to produce the part is $10.46X + $21,000, where X is the number of units produced. A company has offered to supply this part to X Comany it for $12.94 per unit. If X Company chooses to buy the part, it will still incur fixed costs of $12,600, but it will be able to lease the resources that will become available from not making the part for $2,100. 1. If X Company buys the part next year instead of making it, and production is expected to remain at 3,500 units, it will save Submit Answer Tries 0/99 2. If X Company buys the part next year instead of making it, and production next year is expected to be 3,900 units, it will save Submit Answer Tries 0/99
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