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X Company is considering buying a part in 2022 that it currently makes. A company has offered to supply this part to X Company for
X Company is considering buying a part in 2022 that it currently makes. A company has offered to supply this part to X Company for $14.64 per unit. Per-unit production costs in 2021, when production was 51,000 units, were: Materials Direct labor Total overhead Total $5.60 4.60 4.00 $14.20 $56,100 of X Company's total overhead costs were fixed; $39,270 of these fixed costs are unavoidable even if it buys the part. If X Company buys the part, there is nothing it can do with the resources that will become idle. Production in 2022 is expected to be 54,550 units. If X Company continues to make the part instead of buying it in 2022, it will save Submit Answer Incorrect. Tries 1/3 Previous Tries
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