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X Company is considering buying a part next year that they currently make. This year's production costs for 3,000 units were as follows: Per-Unit Total
X Company is considering buying a part next year that they currently make. This year's production costs for 3,000 units were as follows: Per-Unit Total Direct materials Direct labor Variable overhead $2.78 4.99 3.50 5.20 $16.47 $8,340 14,970 10,500 15,600 $49,410 Fixed overhead Total A company has offered to supply this part to X Company for $13.95 per unit. If X Company accepts the offer, it will still incur fixed costs of $7,176, but it will be able to lease the resources that will become available from not making the part for $2,900. Next year's expected production level is 3,500 units. 11. If X Company buys the part next year instead of making it, it will save $1,944 You are correct. Your receipt no. is 158-2458 Previous Tries 12. At what production level would X Company be indifferent between making and buying the part next year
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