X Company is considering buying a part next year that they currently make. A company has offered to supply it for $12.77 per unit. This year's production costs for 3,300 units were as follows:

		Per-Unit	Total
Direct materials		$3.39	$11,187
Direct labor		4.30	14,190
Total overhead		6.70	22,110
Total costs		$14.39	$47,487

$8,910 of total overhead is variable. If X Company chooses to buy the part, it will avoid fixed costs of $7,392.

. If X Company makes the part next year instead of buying it, and production is expected to remain at 3,300 units, it will save

A: $105

B: $152

C: $220

D: $319

E: $462

F: $670

Tries 0/99

. If X Company makes the part next year instead of buying it, and production next year is expected to be 3,800 units, it will save

A: $374

B: $542

C: $786

D: $1,139

E: $1,652

F: $2,395

Tries 0/99