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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 $9.39X + $12,210,
X Company is considering buying a part next year that it currently makes. The budgeted cost function to produce the part is $9.39X + $12,210, where X is the number of units produced. A company has offered to supply this part to X Company for $11.77 per unit. If X Company chooses to buy the part, it will still incur fixed costs of $5,494, but it will be able to sell some of the equipment that it used to make the part for $2,700. Last year, 3,300 units of the part were produced; next year, 3,700 units will be needed. 1. If X Company makes the part next year instead of buying it, it will save Tries 0/3 2. At what production level would X Company be indifferent between making and buying the part next year? el
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