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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: Per-Unit Direct
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: Per-Unit Direct materials $2.35 5.00 Total $7,520 16,000 12,160 9,600 $45,280 Direct labor Variable overhead Fixed overhead Total 3.80 3.00 $14.15 A company has offered to supply this part to X Company for $14.47 per unit. If X Company accepts the offer, it will still incur fixed costs of $5,280, but it will be able to lease the resources that will become available from not making the part for $3,000. 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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