X Company is considering buying a part next year that they currently make. This year's per-unit production costs for 3,500 units were: Materials Direct labor (all variable] Variable overhead Fixed overhead Total production costs $2.42 4.98 3.50 5.90 $16.80 A company has offered to supply this part for $13.39 per unit. If X Company buys the part, $10,532 of the fixed overhead can be avoided. Also if X Company buys the part, it can use the freed-up resources to increase production of another product, resulting in additional contribution margin of $2,500. Production next year is also expected to be 3,500 units. 2. If X Company buys the part instead of making it, it will save Submit Answer Tries 0/3 3. At what production level would X Company be indifferent between making and buying the part? Submit Answer Tries 0/3