X Company currently makes a part and is considering buying it from a company has offered to supply it for $16.99 per unit. This year, per-unit production costs to produce 54,000 units were: Direct materials $5.70 Direct labor 5.40 Overhead 5.10 Total $16.20 $210,600 of the total overhead costs were variable; $22,680 of the fixed overhead costs can be avoided if X Company buys the part. In addition, the resources that were used for production can be rented to another company for $75,000. Production next year is expected to increase to 58,000 units.

3. If X Company continues to make the part instead of buying it, it will save 41956 Submit Answer Incorrect. Tries 1/5 Previous Tries

4. X Company is uncertain about next year's production level. At what production level will the company be indifferent between making and buying the part? 858115 Submit Answer Incorrect. Tries 1/5