X Company currently makes a part and is considering buying it next year from a company that has offered to supply it for $16.84 per unit. This year, total costs to produce 70,000 units were: Direct materials Direct labor Variable overhead Fixed overhead $539,000 315,000 266,000 308,000 If X Company buys the part, $46,200 of the fixed overhead is avoidable. 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 $15,000. The marketing manager estimates that demand next year will increase to 74,400 units. If X Company continues to make the part instead of buying it, it will save A: $425B: $616 OC: $894OD: $1,296 OE: $1,879 OF: $2,725 Submit Answer Tries 0/99