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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: Direct materials
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: Direct materials Direct labor Variable overhead Fixed overhead Total Per-Unit $2.88 4.48 3.20 4.30 $14.86 Total $9,504 14,784 10,560 14,190 $49,038 A company has offered to supply this part to X Company for $13.66 per unit. If X Company accepts the offer, it will still incur fixed costs of $6,386, but it will be able to lease the resources that will become available from not making the part for $3,000. At what production level would X Company be indifferent between making and buying the part next year? 3028 Submit Answer Incorrect. Tries 2/3 Previous Tries
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