Answered step by step
Verified Expert Solution
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
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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started