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X Company is considering buying a part next year that they currently make. This year's production costs for 3,500 units were as follows: Per-Unit Total

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X Company is considering buying a part next year that they currently make. This year's production costs for 3,500 units were as follows: Per-Unit Total $3.39 $11,865 3.57 12,495 Direct materials Direct labor Variable overhead Fixed overhead Total 3.40 11,900 3.40 $13.76 11,900 $48,160 A company has offered to supply this part to X Company for $13.53 per unit. If X Company accepts the offer, it will avoid fixed costs of $5,474, and it will be able to lease the resources that will become available from not making the part for $2,200. At what production level would X Company be indifferent between making and buying the part next year? D: 1,896E: 2,142 F: 2,421 | A: 1,314| Submit Answer B: 1,485C: 1,678 Tries 0/99

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