X Company currently buys a part from a supplier for $13.24 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 3,700 units. Estimated costs to make the part next year are: Direct materials Direct labor Variable overhead Fixed overhead Total Per-Unit $3.11 3.74 3.50 4.80 $15.15 Total $10,574 12,716 11,900 16,320 $51,510 Of the estimated fixed overhead, $8,976 would be additional fixed overhead costs; the remainder would be common costs allocated to the part. 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 continues to buy the part instead of making it, it will save Submit Answer Incorrect. Tries 2/5 Previous Tries Communication Blocked Send Feedback