X Company is considering buying a part in 2020 that it has been making for the past several years. A company has offered to supply this part for $16.74 per unit. Budgeted production in 2020 is 50,000 units, and budgeted per-unit production costs are: X Company is considering buying a part in 2020 that it made in 2019. For 2020, the budgeted production cost function is $10.46X + $17,360, where X is the number of units produced. A company has offered to supply this part to X Company for $13.60 per unit. If X Company accepts the offer, it will avoid fixed costs of $8,854, but it will not be able to do anything with the resources that were used to produce the part. In 2019, 3,100 units of the part were produced; in 2020, 3,500 units will be needed. $5.80 Materials Direct labor (all variable) 5.40 Total overhead Total 5.60 $16.80 $90,000 of X Company's total overhead costs are fixed; $63,000 of the $90,000 are unavoidable even if it buys the part. Also, if X Company buys the part, it can rent the equipment that was used to make the part to another company for $75,000. 1. If X Company makes the part in 2020 instead of buying it, it will save 1986* Tries 0/3 2. At what production level would X Company be indifferent between making and buying the part in 2020? * Tries 0/3 3. If X Company buys the part instead of making it, it will save ARM Tries 0/3 4. At what production level would X company be indifferent between making and buying the part? 20 ** Tries 0/3