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X Company currently buys a part from a supplier for $13.34 per unit but is considering making the part itself next year. Estimated costs
X Company currently buys a part from a supplier for $13.34 per unit but is considering making the part itself next year. Estimated costs to make the part next year are: Per- Unit Total Direct materials $3.14 $10,676 Direct labor 4.32 14,688 Variable 3.00 10,200 overhead Fixed 4.70 15,980 overhead Total $15.16 $51,544 Of the estimated fixed overhead, $9,428 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 out unused factory space, but it will have to use this space to make the part. This year, they purchased 3,400 units of this part, but they're not certain how many units they will need next year. How many units will make them indifferent between continuing to buy the part and making it? Submit Answer Tries 0/4
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