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X Company currently buys a part from a supplier for $13.12 per unit but is considering making the part itself next year. This year, they

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X Company currently buys a part from a supplier for $13.12 per unit but is considering making the part itself next year. This year, they purchased 3,100 units of this part; next year they think they will need 3,500 units. Estimated costs to make the part are: Direct materials Direct labor Variable overhead Fixed overhead Total Per-Unit $2.30 4.56 3.80 4.80 Total $7,130 14,136 11,780 14,880 $15.46 $47,926 Of the estimated fixed overhead, $6,101 are common costs that would be allocated to the part; the rest would be additional fixed overhead costs. X Company currently rents unused factory space for $2,300; 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 -29211 Submit Answer Incorrect.Tries 2/5 Previous Tries

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