X Company is considering buying a part in 2020 that it has been making for...
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X Company is considering buying a part in 2020 that it has been making for the past several years. A company has offered to supply this part for $17.49 per unit. Budgeted production in 2020 is 50,000 units, and budgeted per-unit production costs are: Materials $6.60 Direct labor all variable) 5.20 Total overhead 5.90 Total $17.70 Company's total overhead costs are fixed; $77,000 of the $100,000 are unavoidable even if it buys the part Patiy buys the part, it can rent the equipment that was used to make the part to another company for $80,000 pts. If X Company buys the part instead of making it, it will save 123 BO $9,862 CO $11,538 DO $13,500 EO $15,795 FO $18,480 Pr. At what production level would X company be indifferent between making and buying the p AO 49,181 BO 67,542 CO 67,324 DO 78,769 EO 92,160 FO 107,827
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