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X Company is considering buying a part next year that they currently make. This year's production costs for 3, 500 were: A company has offered

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X Company is considering buying a part next year that they currently make. This year's production costs for 3, 500 were: A company has offered to supply this part for $11.68 per unit. If X Company buys the part, $10, 192 of the fixed overhead can be avoided. Also if X Company buys the part, it can use the freed-up resources to increase production of another product, resulting in additional contribution margin of $2, 500. Production next year is expected to be 3, 800 units. If X Company buys the part instead of making it, it will save A. $2, 888 B. $3, 610 C. $4, 512 D. $5, 641 E. $7, 051 F. $8, 813 X Company is uncertain what production will be next year. What production level would make X Company indifferent between making and buying the part? A. $3, 993 B. 5, 310 C. 7, 603 D. 9, 394 E. 12, 494 F. 16, 616

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