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X Company is considering buying a part next year that they currently make. This year's total production costs for 88,000 units of this part were:

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X Company is considering buying a part next year that they currently make. This year's total production costs for 88,000 units of this part were: Materials Direct labor Variable overhead Fixed overhead Total $575,520 440,000 392,480 131,120 $1,539,120 A company has offered to supply this part for $16.98 per unit. If X Company buys the part, $87,850 of the total fixed overhead is unavoidable, and there is no alternative use of the resources that will become idle. Production next year is expected to be 92,000 units. If X Company continues to make the part instead of buying it, it will save Submit Answer Tries 0/3

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