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X Company is considering buying a part next year that they currently make. This year's production costs for 3,300 units were as follows: Per-Unit $3.10
X Company is considering buying a part next year that they currently make. This year's production costs for 3,300 units were as follows: Per-Unit $3.10 3.35 Direct materials Direct labor Variable overhead Fixed overhead Total Total $10,230 11,055 8,250 13,200 $42,735 2.50 4.00 $12.95 A company has offered to supply this part to X Company for $12.11 per unit. If X Company accepts the offer, it will avoid fixed costs of $6,468, and it will be able to lease the resources that will become available from not making the part for $2,700. At what production level would X Company be indifferent between making and buying the part next year
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