X Company currently buys a part from a supplier for $12.07 per unit but is...
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X Company currently buys a part from a supplier for $12.07 per unit but is considering making the part itself next year. This year, they purchased 3,100 units of this part; next year, they think they will need 3,600 units. Estimated costs to make the part are: Direct materials Direct labor Variable overhead Fixed overhead Total Per-Unit $3.80 3.28 2.60 4.30 Total $11,780 10,168 8,060 13,330 $13.98 $43,338 Of the estimated fixed overhead, $6,132 are common costs that would be allocated to the part; the rest would be additional fixed overhead costs. X Company currently rents unusecd factory space for $3,000; it will have to use this space to make the part. If X Company continues to buy the part instead of making it, it will save
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