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X Company is considering buying a part next year that they currently make. This year's total production costs for 96,500 units of this part
X Company is considering buying a part next year that they currently make. This year's total production costs for 96,500 units of this part were: Materials Direct labor Variable overhead Fixed overhead Total $538,470 434,250 251,865 188,175 $1,412,760 A company has offered to supply this part for $13.09 per unit. If X Company buys the part, $126,077 of the total fixed overhead is unavoidable, and 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 OA: $13,393 OB: $15,670 OC: $18,334 OD: $21,451 E: $25,098 Submit Answer Tries 0/99 F: $29,364
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