X Company no longer has the space necessary to produce all of its parts. A company...

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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 for $28.05 per unit. This year, production was 14,000 units; next year, production is expected to be 18,000 units. Per-unit production costs for the part this year were: Materials Direct labor Variable overhead Fixed overhead Total $11.98 9.71 5.70 2.30 $29.69 $24,794 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 another company for $3,000. If X Company continues to make the part, it will save 7726 Submit Answer Incorrect. Tries 2/4 Previous Tries 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 $28.05 per unit. This year, production was 14,000 units; next year, production is expected to be 18,000 units. Per-unit production costs for the part this year were: Materials Direct labor Variable overhead Fixed overhead Total $11.98 9.71 5.70 2.30 $29.69 $24,794 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 another company for $3,000. If X Company continues to make the part, it will save 7726 Submit Answer Incorrect. Tries 2/4 Previous Tries