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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: Direct materials
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 $3.82 3.48 4.30 4.70 $16.30 Total $12,224 11,136 13,760 15,040 $52,160 A company has offered to supply this part to X Company for $14.76 per unit. If X Company accepts the offer, it will avoid fixed costs of $7,370, and it will be able to lease the resources that will become available from not making the part for $2,100. At what production level would X Company be indifferent between making and buying the part next year? Submit Answer Tries 0/3
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