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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
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 $27.13 per unit. This year, production was 14,500 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 $11:46 9.06 6.01 3.21 $29.74 $38,167 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 buys the part instead of continuing to make it, it will save A: $190 B: $275 C $399 D: $578 E: 5838 F: $1,215 Submit Answer Tries 0/99
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