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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 $3.07 3.60 3.00 5.00 $14.67 Total $9,517 11,160 9,300 15,500 $45,477 A company has offered to supply this part to X Company for $12.81 per unit. If X Company accepts the offer, it will still incur fixed costs of $7,595, 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: 1,396 Submit Answer B: 1,746 OC: 2,182 OD: 2,727 OE: 3,409 OF: 4,262 Tries 0/99
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