X Company is considering buying a part next year that they currently make. A company has offered to supply it for $13.45 per unit. This year's production costs for 3,000 units were as follows:

X Company is considering buying a part next year that they currently make. A company has offered to supply it for $13.45 per unit. This year's production costs for 3,000 units were as follows: Per-Unit Total Direct materials $2.89 $8,670 Direct labor 4.84 14,520 Total overhead 7.50 22,500 Total costs $15.23 $45,690 $9,000 of total overhead is variable. If X Company chooses to buy the part, it will still incur xed costs of $4,995. 1. If X Company buys the part next year instead of making it, and production is expected to remain at 3,000 units, it will save OA: $113 OB: $164 Oc: $238 On: $345 OE: $500 OF: $725 Ei' Tries 0/99 2. If X Company makes the part next year instead of buying it, and production next year is expected to be 3,500 units, it will save OA: $1,015 OB: $1,147 Oc: $1,296 OD: $1,465 OE: $1,655 OF: $1,870 m_. N