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X Company no longer has the space necessary to produce all of its parts. A company has offered to supply one of X Company's parts
X Company no longer has the space necessary to produce all of its parts. A company has offered to supply one of X Company's parts for $26.90 per unit. This year, production was 12,500 units; next year, production is expected to be 14,550 units. Per-unit production costs for the part this year were: Materials Direct labor Variable overhead Fixed overhead Total $10.54 9.25 6.45 2.42 $28.66 $21,780 of X Company's fixed overhead cannot be avoided even if it buys the part. In addition, if X Company buys the part, it will be able to rent some equipment that will no longer be needed, to a company for $3,250. X Company is uncertain about its 14,550 unit production estimate for next year. At what level of production would X Company be indifferent between making and buying the part next year? C: 27,746| OD: 34,683|| OE: 43,353 F: 54,192 OA: 17,758 OB: 22,197 Submit Answer Tries 0/99
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