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X Company is considering buying a part next year that they currently make. This year's total production costs for 91,500 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 91,500 units of this part were: Materials $618,540 Direct labor 424,560 Variable 366,915 overhead Fixed 155,550 overhead Total $1,565,565 A company has offered to supply this part for $16.30 per unit. If X Company buys the part, $107,330 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 3,500 units. If X Company continues to make the part, it will save Submit Answer Tries 0/4
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