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The following information is for Questions 1 and 2 X Company is considering buying a part next year that they currently make. A company has
The following information is for Questions 1 and 2 X Company is considering buying a part next year that they currently make. A company has offered to supply it for $13.66 per unit. This year's production costs for 3,300 units were as follows: Total Direct materials Direct labor Total overhead Total costs Per-Unit $2.51 4.54 8.70 $15.75 $8,283 14,982 28,710 $51,975 $15,840 of total overhead is fixed. If X Company chooses to buy the part, it will avoid fixed costs of $9,821. 1. If X Company buys the part next year instead of making it, and production is expected to remain at 3,300 units, it will save A: $360 B: $449 C: $562 D: $702 E: $878|OF: $1,097 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 3,600 units, it will save A: $21 B: $27 C: $33|OD: $41 E: $52 F: $65 Submit Answer Tries 0/99
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