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X Company is considering buying a part next year that they currently make. This year's total production costs for 98,000 units of this part
X Company is considering buying a part next year that they currently make. This year's total production costs for 98,000 units of this part were Materials Direct labor Variable overhead Fixed overhead Total $515,480 467,460 332,220 156,800 $1,471,960 A company has offered to supply this part for $13.69 per unit. If x Company buys the part, $75,264 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 decrease by 4,000 units If X Company buys the part instead of continuing to make it, it will save A: $34,403 B: 549,884 C $72,332 D: $104,881 E: $152,078 F: $220,513 S Tries 0/99
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