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X Company is considering buying a part next year that they currently make. This year's per-unit 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 per-unit production costs for 85,500 units of this part were: Materials $5.13 Direct labor 4.03 Variable 3.82 overhead Fixed overhead Total 1.85 $14.83 A company has offered to supply this part for $13.79 per unit. If X Company buys the part, $86,996 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 90,000 units. If X Company continues to make the part, it will save Submit Answer Tries 0/4
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