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X Company is considering buying a part next year that they currently make. This year's total production costs for 89,500 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 89,500 units of this part were: Materials Direct labor Variable overhead Fixed overhead Total $482,405 428,705 326,675 126,195 $1,363,980 A company has offered to supply this part for $14.37 per unit. If X Company buys the part, $66,883 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 increase by 4,750 units. If X Company buys the part instead of continuing to make it, it will save OA: $7,194 OB: $8,417 OC: $9,847| OD: $11,522 OE: $13,480 OF: $15,772 Submit Answer Tries 0/99
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