X company is considering buying a part next year that they currently make. A company has offered to supply it for $13.02 per unit. This year's production costs for 3200 units were as follows:

The following information is for Questions 1 and 2 X Company is considering buying a part next year that they currently make. A company has offered to supply it for $13.02 per unit. This year's production costs for 3,200 units were as follows: Direct materials Direct labor Total overhead Total costs Per-Unit $3.03 3.30 8.80 $15.13 Total $9,696 10,560 28,160 $48,416 $15,040 of total overhead is fixed. If X Company chooses to buy the part, it will still incur fixed costs of $6,166. 1. If X Company buys the part next year instead of making it, and production is expected to remain at 3,200 units, it will save C: $440 D: $586 E: $779 F: $1,036 A: $249 B: $331 Tries 0/99 2. If X Company makes the part next year instead of buying it, and production next year is expected to be 3,700 units, it will save C: $233 D: $337 E: $489 F: $709 A: $111 B: $160 Tries 0/99 Send Feedback Communication Blocked 3:26 2020/11/4 4 5 w ER