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X Company is considering buying a part in 2022 that it currently makes. The budgeted cost function to produce the part is $11.77X + $9,600,
X Company is considering buying a part in 2022 that it currently makes. The budgeted cost function to produce the part is $11.77X + $9,600, where X is the number of units produced. A company has offered to supply this part to X Company for $14.25 per unit. If X Company chooses to buy the part, it will avoid fixed costs of $6,048, and it will be able to sell some of the equipment that it used to make the part for $2,200. In 2021, 3,000 units of the part were produced; in 2022, 3,400 units will be needed. 1. If X Company makes the part in 2022 instead of buying it, it will save A: $127| OB: $184| OC: $267 D: $387 E: $561 F: $813 Submit Answer Tries 0/99 2. At what production level would X Company be indifferent between making and buying the part in 2022? A: 799|| OB: 1,063 C: 1,414 D: 1,880 E: 2,501 F: 3,326 Submit Answer Tries 0/99
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