Lulipany is considering buying a part next year that they currently make. This year's production...
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Lulipany is considering buying a part next year that they currently make. This year's production costs for 3,500 units were as follows: Per-Unit Total $2.64 $9,240 3.21 11,235 Direct materials Direct labor Variable overhead Fixed overhead Total 4.10 14,350 5.00 $14.95 17,500 $52,325 A company has offered to supply this part to X Company for $13.26 per unit. If X Company accepts the offer, it will still incur fixed costs of $8,750, but it will be able to lease the resources that will become available from not making the part for $2,200. At what production level would X Company be indifferent between making and buying the part next year? E: 3,308 F: 4,797 A: 748 B: 1,085 C: 1,573 OD: 2,281 Submit Answer Tries 0/99 2 Communication Blocked Send Feedback
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