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X Company is considering buying a part next year that they currently make. This year's production costs for 3,300 units were as follows: Direct materials
X Company is considering buying a part next year that they currently make. This year's production costs for 3,300 units were as follows: Direct materials Direct labor Variable overhead Fixed overhead Per-Unit $3.07 3.76 3.90 4.50 $15.23 Total $10,131 12,408 12,870 14,850 $50,259 Total A company has offered to supply this part to X Company for $14.03 per unit. If X Company accepts the offer, it will avoid fixed costs of $6,980, and it will be able to lease the resources that will become available from not making the part for $2,400. At what production level would X Company be indifferent between making and buying the part next year? A: 2,274 Submit Answer B: 2,842 OC: 3,553 OD: 4,441 OE: 5,551 OF: 6,939 Tries 0/99
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