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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 $18.96 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 $18.96 per unit. This year, total costs to produce 66,000 units were: Direct materials Direct labor Variable overhead Fixed overhead $561,000 376,200 277,200 303,600 If X Company buys the part, $248,952 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 $15,000. The marketing manager estimates that demand next year will increase to 70,700 units. If X Company buys the part instead of making it, it will save OA: $25,689 B: $30,056 OC: $35,166 OD: $41,144 OE: $48,138 OF: $56,322 Submit Answer Tries 0/99

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