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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 3,200 units were as follows: Per-Unit Total Direct materials $3.93 $12,576 Direct labor 3.07 9,824 Variable overhead 2.80 8,960 Fixed overhead 5.40 17,280 Total $15.20 $48,640 A company has offered to supply this part to X Company for $12.32 per unit. If X Company accepts the offer, it will still incur fixed costs of $8,640, but it will be able to lease the resources that will become available from not making the part for $2,800. Next year's expected production level is 3,600 units. 11. If X Company buys the part next year instead of making it, it will save Submit Answer Tries 0/3 12. At what production level would X Company be indifferent between making and buying the part next year
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