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X Company is considering buying a part next year that it currently makes. A company has offered to supply this part to X Company for
X Company is considering buying a part next year that it currently makes. A company has offered to supply this part to X Company for $15.00 per unit. Per-unit production costs last year, when production was 59,000 units, were: Materials Direct labor Total overhead Total $6.30 4.30 3.90 $14.50 $64,900 of X Company's total overhead costs were fixed; $51,271 of these fixed costs are unavoidable even if it buys the part. If X Company buys the part, there is nothing it can do with the resources that will become idle. Production next year is expected to be 63,800 units. If X Company continues to make the part instead of buying it next year, it will save A: $29,013 OB: $42,069 OC: $61,001| OD: $88,451 OE: $128,254 OF: $185,968 Submit Answer Tries 0/99
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