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X Company currently buys a part from a supplier for $11.56 per unit but is considering making the part itself next year. Estimated costs
X Company currently buys a part from a supplier for $11.56 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 $2.63 $9,205 Direct labor 3.37 11,795 Variable overhead 2.70 9,450 Fixed overhead Total 4.90 17,150 $13.60 $47,600 Of the estimated fixed overhead, $7,203 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 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: 2,919 B: 3,299 C: 3,728 D: 4,212 E: 4,760 F: 5,379 Submit Answer Tries 0/99
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