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X Company is considering buying a part next year that it currently makes. The budgeted cost function to produce the part is $11.43X + $19,250,
X Company is considering buying a part next year that it currently makes. The budgeted cost function to produce the part is $11.43X + $19,250, where X is the number of units produced. A company has offered to supply this part to X Company for $13.86 per unit. If X Company chooses to buy the part, it will still incur fixed costs of $8,470, but it will be able to sell some of the equipment that it used to make the part for $2,200. Last year, 3,500 units of the part were produced; next year, 4,000 units will be needed. a. If X Company buys the part next year instead of making it, it will save Submit Answer Tries 0/3 b. At what production level would X Company be indifferent between making and buying the part next year? Submit Answer Tries 0/3
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