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X Company is considering buying a part next year that it currently makes. The budgeted cost function to produce the part is $10.92X + $9,600,
X Company is considering buying a part next year that it currently makes. The budgeted cost function to produce the part is $10.92X + $9,600, where X is the number of units produced. A company has offered to supply this part to X Company for $13.69 per unit. If X Company chooses to buy the part, it will still incur fixed costs of $4,320, but it will be able to sell some of the equipment that it used to make the part for $2,300. Last year, 3,000 units of the part were produced; next year, 3,400 units will be needed. 1. If X Company makes the part next year instead of buying it, it will save Submit Answer Incorrect. Tries 2/3 Previous Tries
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