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X Company is considering buying a part next year that they currently make. This year's production costs for 3,000 units were as follows: Direct materials
X Company is considering buying a part next year that they currently make. This year's production costs for 3,000 units were as follows: Direct materials Direct labor Variable overhead Per-Unit $3.89 3.65 3.70 5.80 $17.04 Total $11,670 10,950 11,100 17,400 $51,120 Fixed overhead Total A company has offered to supply this part to X Company for $14.35 per unit. If X Company accepts the offer, it will avoid fixed costs of $8,004, and it will be able to lease the resources that will become available from not making the part for $2,400. At what production level would X Company be indifferent between making and buying the part next year? Submit Answer Tries 0/3
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