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X Company is considering buying a part next year that it has been making for the past several years. A company has offered to supply
X Company is considering buying a part next year that it has been making for the past several years. A company has offered to supply this part for $16.93 per unit. Budgeted production next year is 54,000 units, and budgeted production costs per-unit are: Materials Direct labor Total overhead Total $5.70 5.60 5.60 $16.90 $81,000 of X Company's total overhead costs are fixed; $51,030 of the $81,000 are unavoidable even if it buys the part. If X Company continues to make the part instead of buying it next year, it will save A: $24,014 B: $28,097 C: $32,873 D: $38,462 E: $45,000|| OF: $52,650
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