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X Company is considering buying a part next year that they currently make. This year's total production costs for 86,500 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 86,500 units of this part were: Materials Direct labor Variable overhead Fixed overhead Total $449,800 402,225 383,195 89,095 $1,324,315 A company has offered to supply this part for $15.13 per unit. If X Company buys the part, $51,675 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 decrease by 4,500 units. If X Company continues to make the part, it will save A: $15,353 B: $22,262 C: $32,280 D: $46,806 E: $67,869 F: $98,410 Submit Answer Tries 0/99
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