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X Company is considering buying a part next year that they currently make. This year's total production costs for 85,500 units of this part were:
X Company is considering buying a part next year that they currently make. This year's total production costs for 85,500 units of this part were: Materials Direct labor Variable overhead Fixed overhead Total $571,140 427,500 283,860 138,510 $1,421,010 A company has offered to supply this part for $15.82 per unit. If X Company buys the part, $55,404 of the total fixed overhead is avoidable, but there is no alternative use of the resources that will become idle. Production next year is expected to increase by 5,000 units. If X Company continues to make the part, it will save Submit Answer Incorrect. Tries 1/4 Previous Tries
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