X Company is considering buying a part next year that they currently make. A company has offered to supply it for $12.04 per unit. This year's production costs for 3,300 units were as follows: Direct materials Direct labor Total overhead Total costs $8,910 of total overhead is variable. If X Company chooses to buy the part, it will avoid fixed costs of $10,025. Per-Unit Total $2.91 $9,603 3.71 12,243 7.60 25,080 $14.22 $46,926 1. If X Company buys the part next year instead of making it, and production is expected to remain at 3,300 units, it will save A: $672 B: $840 C: $1,049 Submit Answer Tries 0/99 D: $1,312 E: $1,640 F: $2,050 2. If X Company makes the part next year instead of buying it, and production next year is expected to be 3,800 units, it will save A: $159 B: $199 C: $248 D: $311 E: $388 F: $485 Submit Answer Tries 0/99