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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 $12.39X + $10,200,
X Company is considering buying a part in 2022 that it currently makes. The budgeted cost function to produce the part is $12.39X + $10,200, where X is the number of units produced. A company has offered to supply this part to X Company for $15.18 per unit. If X Company chooses to buy the part, it will avoid fixed costs of $6,426, and it will be able to sell some of the equipment that it used to make the part for $2,600. 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: $151|| OB: $188| OC: $236 D: $294 E: $368 F: $460 Submit Answer Tries 0/99 2. At what production level would X Company be indifferent between making and buying the part in 2022? A: 1,375 B: 1,829 OC: 2,432|| OD: 3,235| OE: 4,303|| OF: 5,723 Submit Answer Tries 0/99
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