X Company currently buys a part from a supplier for $12.99 per unit but is considering making the part itself next year. This year, they purchased 3,200 units of this part; next year, they will need 3,600 units. Estimated costs to make the part next year are: Direct materials Direct labor Variable overhead Fixed overhead Total Per-Unit $2.44 4.37 3.20 3.10 $13.11 Total $7,808 13,984 10,240 9,920 $41,952 of the estimated fixed overhead, $4,563 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: $1,492 OB: $1,746 OC: $2,042 OD: $2,390 OE: $2,796 | OF: $3,271 Submit Answer Tries 0/99