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 $25.57 per unit. This year, production was 13,000 units; next year, production is expected to be 16,000 units. Per-unit production costs for the part this year were: Materials $10.27 Direct labor 8.62 Variable overhead 6.05 Fixed overhead 3.50 Total $28.44 $40,495 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 $2,000. If X Company continues to make the part, it will save A: $696 OB: $1,009 C: $1,463 D: $2,121 OE: $3,075 OF: $4,459 Submit Answer Tries 0/99