X Company is considering buying a part next year that they currently make. This year's total production costs for 86,000 units of this part were: Materials Direct labor Variable overhead Fixed overhead Total $493,640 364,640 338,840 132,440 $1,329,560 A company has offered to supply this part for $14.45 per unit. If X Company buys the part, $55,625 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 5,000 units. If X Company buys the part instead of continuing to make it, it will save 13975 Submit Answer Incorrect. Tries 3/4 Previous Tries