X Company currently mukes 2,700 units of a unique part for one of its finished...
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X Company currently mukes 2,700 units of a unique part for one of its finished products. Variable production costs for this part are $13.30 per unit; ficed conts associated with this part are $15,000 per year. A company has offered to supply x Company with the part for a price of $15.50 per unit. For x Company, the bad nems is that it will have to inspect the parts upon amval, recuiring rental of a special machion for $2,500 per year and per-unit inspection costs of 32 . 80 . The good news is that if it biys the part, not only can it aveid al of the fixed corts associated with the production of the part, but it can use the released production facilties te generate 113,000 per yeMi At what procuction level would x Company be ind derent between'making the part and boying it? A: 5,100 B: 5,763,P C: 6,512 :7.359 0,315 F: 9,396
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