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X Company is considering buying a part next year that they currently make. This year's total production costs for 92,500 units of this part

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X Company is considering buying a part next year that they currently make. This year's total production costs for 92,500 units of this part were: Materials Direct labor Variable overhead Fixed overhead Total $590,150 410,700 392,200 123,025 $1,516,075 A company has offered to supply this part for $15.43 per unit. If X Company buys the part, $50,440 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 4,500 units. If X Company buys the part instead of continuing to make it, it will save A: $5,714 B: $7,600 OC: $10,108 OD: $13,444 E: $17,880 OF: $23,781 Submit Answer Tries 0/99

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