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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 $19.68 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 $19.68 per unit. This year, total costs to produce 69,000 units were: Direct materials Direct labor Variable overhead Fixed overhead $607,200 414,000 269,100 303,600 If X Company buys the part, $60,720 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 $10,000. The marketing manager estimates that demand next year will increase to 73,550 units. If X Company continues to make the part instead of buying it, it will save Submit Answer Tries 0/3

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