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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: Direct materials
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: Direct materials Direct labor Variable overhead Fixed overhead Total Per-Unit $4.00 3.78 4.40 4.00 $16.18 Total $13,200 12,474 14,520 13,200 $53,394 A company has offered to supply this part to X Company for $15.58 per unit. If X Company accepts the offer, it will still incur fixed costs of $6,204, but 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? Submit Answer Tries 0/3
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