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X Company is considering buying a part next year that they currently make. This year's total production costs for 94,000 units of this part
X Company is considering buying a part next year that they currently make. This year's total production costs for 94,000 units of this part were: Materials Direct labor Variable overhead Fixed overhead Total $639,200 473,760 237,820 141,000 $1,491,780 A company has offered to supply this part for $14.91 per unit. If X Company buys the part, $56,400 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 be 99,000 units. If X Company buys the part instead of continuing to make it, it will save A: $1,836 Submit Answer B: $2,148 OC: $2,513 D: $2,940 E: $3,440 Tries 0/99 F: $4,025
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