X Company currently buys a part from a supplier for $12.84 per unit but is considering making the part itself next year. This year, they purchased 3,400 units of this part; next year, they will need 3,800 units. Estimated costs to make the part next year are: Direct materials Direct labor Variable overhead Fixed overhead Total Per-Unit $3.23 3.71 3.10 4.10 $14.14 Total $10,982 12,614 10,540 13,940 $48,076 Of the estimated fixed overhead, $6,691 are common costs that would be allocated to the part; the remainder would be additional fixed overhead costs. X Company currently receives $2,100 a year by renting unused factory space, but it will have to use this space to make the part. If X Company makes the part instead of continuing to buy it, it will save OA: $1,291|OB: $1,717| OC: $2,284 OD: $3,038 OE: $4,040 OF: $5,373 Submit Answer Tries 0/99