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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: Direct materials
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: Direct materials Per-Unit $3.00 4.21 Total $9,900 13,893 11,880 11,880 $47,553 Direct labor Variable overhead Fixed overhead Total 3.60 3.60 $14.41 A company has offered to supply this part to X Company for $13.94 per unit. If X Company accepts the offer, it will avoid fixed costs of $5,465, 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? A: 2,230 B: 2,609 OC: 3,052 OD: 3,571 OE: 4,178 OF: 4,888
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