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X Company is considering buying a part next year that they currently make. This year's total production costs for 84,000 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 84,000 units of this part were: Materials Direct labor Variable overhead Fixed overhead Total $424,200 430,920 367,080 88,200 $1,310,400 A company has offered to supply this part for $14.93 per unit. If X Company buys the part, $44,100 of the total fixed overhead is avoidable, but 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 buys the part instead of continuing to make it, it will save Submit Answer Tries 0/3
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