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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: Per-Unit $3.17

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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: Per-Unit $3.17 3.05 Direct materials Direct labor Variable overhead Fixed overhead Total Total $10,461 10,065 14,190 13,860 $48,576 4.30 4.20 $14.72 A company has offered to supply this part to X Company for $14.00 per unit. If X Company accepts the offer, it will avoid fixed costs of $6,237, and it will be able to lease the resources that will become available from not making the part for $2,700. At what production level would X Company be indifferent between making and buying the part next year? F: 2,568 A: 401 B: 581 C: 842D: 1,221E: 1,771 Submit Answer Tries 0/99

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