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X Company currently makes a part and is considering buying it next year from a company that has offered to supply it for $18.11 per

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X Company currently makes a part and is considering buying it next year from a company that has offered to supply it for $18.11 per unit. This year, total costs to produce 66,000 units were: Direct materials Direct labor Variable overhead Fixed overhead $594,000 264,000 283,800 270,600 If X Company buys the part, $232,716 of the fixed overhead is unavoidable. The resources that will become idle if they choose to buy the part can be used to increase production of another product, resulting in additional total contribution margin of $10,000. The marketing manager estimates that demand next year will increase to 70,550 units. If X Company continues to make the part instead of buying it, it will save A: $9,262B: $10,836C: $12,678 D: $14,833 E: $17,355 F: $20,305

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