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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 $9.23X + $12,000,
X Company is considering buying a part next year that it currently makes. The budgeted cost function to produce the part is $9.23X + $12,000, where X is the number of units produced. A company has offered to supply this part to X Company for $11.98 per unit. If X Company chooses to buy the part, it will still incur fixed costs of $5,160, but it will be able to sell some of the equipment that it used to make the part for $2,200. Last year, 3,000 units of the part were produced; next year, 3,500 units will be needed. 1. If X Company makes the part next year instead of buying it, it will save Submit Answer Tries 0/3 2. At what production level would X Company be indifferent between making and buying the part next year
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