Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following information is for Questions 11 and 12 X Company is considering buying a part next year that they currently make. This year's production

image text in transcribed

The following information is for Questions 11 and 12 X Company is considering buying a part next year that they currently make. This year's production costs for 3,100 units were as follows: Direct materials Direct labor Variable overhead Fixed overhead Total Per-Unit $3.30 3.20 3.20 3.90 $13.60 Total $10,230 9,920 9,920 12,090 $42,160 A company has offered to supply this part to X Company for $12.10 per unit. If X Company accepts the offer, it will still incur fixed costs of $6,166, but it will be able to lease the resources that will become available from not making the part for $2,200. Next year's expected production level is 3,500 units. 11. If X Company makes the part next year instead of buying it, it will save A: $177 B: $221 C: $276 D: $345 E: $431 F: $539 Submit Answer Tries 0/99 12. At what production level would X Company be indifferent between making and buying the part next year? A: 528 B: 766|| OC: 1,110|| OD: 1,610|| OE: 2,335| OF: 3,385

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Internal Auditing Principles And Techniques

Authors: Richard L. Ratliff, W. Wallace, Walter B. Mcfarland, J. Loeboecke

2nd Edition

0894133268, 978-0894133268

More Books

Students also viewed these Accounting questions

Question

7.3 Describe considerations in the preliminary applicant screening.

Answered: 1 week ago

Question

7.2 Explain the selection process.

Answered: 1 week ago