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X Company is considering buying a part next year that they currently make. This year's total production costs for 93,000 units of this part
X Company is considering buying a part next year that they currently make. This year's total production costs for 93,000 units of this part were: Materials $616,590 Direct 500,340 labor Variable 269,700 overhead Fixed 119,040 overhead Total $1,505,670 A company has offered to supply this part for $15.89 per unit. If X Company buys the part, $66,662 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 3,500 units. If X Company continues to make the part, it will save A: $18,090 B: $22,613 OC: $28,266 OD: $35,332 $44,165 E: OF: $55,207 Submit Answer Tries 0/99
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