Answered step by step
Verified Expert Solution
Question
1 Approved Answer
x Company currently buys a part from a supplier for $13.07 per unit but is considering making the part itself next year. Estimated costs
x Company currently buys a part from a supplier for $13.07 per unit but is considering making the part itself next year. Estimated costs to make the part next year are Direct materials Direct labor Variable overhead Fixed overhead Total Per-Unit $3.61 Total $12,635 3.23 11,305 3.40 11,9001 3.20 $13.44 11,200 $47,040 Of the estimated fixed overhead, $5.376 are common costs that would be allocated to the part; the remainder would be additional fixed overhead costs. X Company currently receives $2,900 a year by renting out unused factory space, but it will have to use this space to make the part This year, they purchased 3,500 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? A 1,011 1,466 C: 2,126 D 3,083 E 4,470 F: 6,481 Submit A Tries 0/99
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started