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X Company is considering buying a part next year that they currently make. This year's production costs for 3,200 units were as follows: X Company
X Company is considering buying a part next year that they currently make. This year's production costs for 3,200 units were as follows:
X Company is considering buying a part next year that they currently make. This year's production costs for 3,200 units were as follows: Direct materials Direct labor Variable overhead Fixed overhead Total Per-Unit $2.33 4.34 3.40 6.00 $16.07 Total $7,456 13,888 10,880 19,200 $51,424 A company has offered to supply this part to X Company for $12.78 per unit. If X Company accepts the offer, it will still incur fixed costs of $10,560, but it will be able $3,000. Next year's expected production level is 3,600 units. lease the resources that will become available from not making the part for 11. If X Company buys the part next year instead of making it, it will save OA: $859| OB: $1,005 OC: $1,176 OD: $1,376 OE: $1,610 OF: $1,884 Submit Answer Tries 0/99 12. At what production level would X Company be indifferent between making and buying the part next year? OA: 1,373|OB: 1,826 OC: 2,428 | OD: 3,229 OE: 4,295 OF: 5,713 Submit Answer Tries 0/99Step by Step Solution
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