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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: Per-Unit Direct
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: Per-Unit Direct materials Direct labor Variable overhead Fixed overhead Total $2.80 3.42 2.50 3.70 $12.42 Total $9,240 11,286 8,250 12,210 $40,986 A company has offered to supply this part to X Company for $11.97 per unit. If X Company accepts the offer, it will avoid fixed costs of $5,739, and it will be able to lease the resources that will become available from not making the part for $2,900. At what production level would X Company be indifferent between making and buying the part next year
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