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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 $15.93 per
X Company currently makes a part and is considering buying it next year from a company that has offered to supply it for $15.93 per unit. This year, total costs to produce 68,000 units were: Direct materials Direct labor Variable overhead Fixed overhead $482,800 278,800 278,800 333,200 If X Company buys the part, $279,888 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 72,350 units. If X Company buys the part instead of making it, it will save A: $7,265 OB: $9,662 OC: $12,851 OD: $17,091 OE: $22,732 OF: $30,233 Submit Answer Tries 0/99
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