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 $15.51 per unit. Per-unit production costs last year, when production was 57,000 units, were:

Materials	$5.30
Direct labor	5.00
Total overhead	4.70
Total	$15.00

$74,100 of X Company's total overhead costs were fixed; $50,388 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 61,550 units.

If X Company continues to make the part instead of buying it next year, it will save

A: $87,694

B: $99,094

C: $111,976

D: $126,533

E: $142,982

F: $161,570

Tries 0/99