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X Company is considering buying a part next year that they currently make. This year's total production costs for 84,500 units of this part
X Company is considering buying a part next year that they currently make. This year's total production costs for 84,500 units of this part were: Materials Direct labor Variable overhead Fixed overhead Total $572,910 475,735 305,045 126,750 $1,480,440 A company has offered to supply this part for $16.90 per unit. If X Company buys the part, $78,585 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 increase by 3,500 units. If X Company continues to make the part, it will save A: $21,386 Submit Answer B: $25,021 C: $29,275 D: $34,252 E: $40,075 F: $46,887 Tries 0/99
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