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X Company is considering buying a part next year that they currently make. This year's production costs for 3,100 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 3,100 units were as follows: Direct materials Direct labor Variable overhead Fixed overhead Total Per-Unit $2.75 4.18 3.90 3.80 $14.63 Total $8,525 12,958 12,090 11,780 $45,353 A company has offered to supply this part to X Company for $14.00 per unit. If X Company accepts the offer, it will still incur fixed costs of $5,772, but it will be able to lease the resources that will become available from not making the part for $2,800. At what production level would X Company be indifferent between making and buying the part next year? A: 1,267 OB: 1,483C: 1,735 OD: 2,030 OE: 2,375 OF: 2,778 Submit Answer Tries 0/99
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