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X Company currently buys a part from a supplier for $13.31 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 $13.31 per unit but is considering making the part itself next year. This year, they purchased 3,300 units of this part; next year, they think they will need 3,800 units. Estimated costs to make the part are: Direct materials Direct labor Variable overhead Fixed overhead Total Per-Unit $3.28 3.66 4.00 5.40 Total $10,824 12,078 13,200 17,820 $16.34 $53,922 of the estimated fixed overhead,8,375 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 $2,600; 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 4224 Submit Answer Tries 1/5 Previous Tries

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