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X Company currently makes a part and is considering buying it from a company that has offered to supply it for $18.62 per unit. This
X Company currently makes a part and is considering buying it from a company that has offered to supply it for $18.62 per unit. This year, per-unit production costs to produce 19,000 units were: Direct materials Direct labor Overhead Total $8.30 5.40 6.30 $20.00 $57,000 of the total overhead costs were fixed. $24,510 of the fixed overhead costs are unavoidable if X Company buys the part. If the company buys the part, the resources that are used to make it cannot be used for anything else. Production next year is expected to be 19,500 units. If X Company buys the part instead of making it, it will save Tries 0/3
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