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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 $467,685 373,635 320,625 131,670 $1,293,615 A company has offered to supply this part for $14.07 per unit. If X Company buys the part, $57,935 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 be 89,000 units. If X Company buys the part instead of continuing to make it, it will save OA: $9,737 OB: $12,172 OC: $15,215 OD: $19,018 OE: $23,773 OF: $29,716 Submit Answer Tries 0/99 Send Feedba Communication Blocked
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