X Company currently buys a part from a supplier for $13.50 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 3,500 units. Estimated costs to make the part next year are: Direct materials Direct labor Variable overhead Fixed overhead Total Per-Unit $2.58 4.33 3.60 3.30 $13.81 Total $8,256 13,856 11,520 10,560 $44,192 Of the estimated fixed overhead, $6,019 would be additional fixed overhead costs; the remainder would be common costs allocated to the part. X Company currently receives $3,000 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 A: $1,132 B: $1,279 C: $1,446 D: $1,634 E: $1,846 F: $2,086 Submit Answer Tries 100