X Company is considering buying a part next year that they currently make. This year's total production costs for 94,500 units of this part were:

Materials	$550,935
Direct labor	468,720
Variable overhead	318,465
Fixed overhead	132,300
Total	$1,470,420

A company has offered to supply this part for $14.50 per unit. If X Company buys the part, $87,318 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 98,050 units.

If X Company buys the part instead of continuing to make it, it will save

X Company is considering buying a part next year that they currently make. This year's total production costs for 94,500 units of this part were: Materials Direct labor Variable overhead Fixed overhead Total $550,935 468,720 318,465 132,300 $1,470,420 A company has offered to supply this part for $14.50 per unit. idle. Production next year is expected to be 98,050 units. X Company buys the part, $87,318 of the total fixed overhead is unavoidable, and there is no alternative use of the resources that will If X Company buys the part instead of continuing to make it, it will save