Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. x company is considering buying a part in 2020 tha

X Company is considering buying a part in 2020 that it made in 2019. For...

60.1K

Verified Solution

Question

Accounting

image
X Company is considering buying a part in 2020 that it made in 2019. For 2020, the budgeted production cost function is $11.05X+$12,000, where X is the number of units produced. A company has offered to supply this part to X Company for $14.20 per unit. If X Company accepts the offer, it will still incur fixed costs of $5,400, and it will not be able to do anything with the resources that were used to produce the part. In 2019, 3,000 units of the part were produced; in 2020, 3,300 units will be needed. 8 pt1. If X Company makes the part in 2020 instead of buying it, it will save EO $7,412 DO $5,930 CO $4,744 O 83,795 FO $9,265 1. AO $3,036 S at 2 At what production level would X Company be indifferent between making and buying the part in 2020? CO 1,073 O 1676 DO 1,341 BO 858 FO 2,095 2. AO 687

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

A small plane that moves along a 1.4 kmkm long runway during take-off accelerates from rest...

Physics
Q

arbon fixation is the only stage in Calvin cycle that occurs without the expense of

Biology
Q

Many biological structures are composed of smaller units assembled into more complex structures having functions...

Biology
Q

Which statement s is are true about heredity Each parent passes on to its offspring...

Biology
Q

Simplify the expression 624 5x6 5x using factoring and exponential rul

Calculus
Q

Required information [The following information applies to the questions displayed below.) The following...

Accounting
Q

Jade is single, 45 years old, has AGI of $32,000, and made the following charitable...

Accounting
Q

Potomac LLC purchased an automobile for $30,000 on August 5, 2016. What is Potomac's depreciation...

Accounting
Q

Schmid Corporation issues $550,000, 11%, 5year bonds on January 1, 2023 for $509,000. Interest is...

Accounting
Q

Accounting
Q

Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing...

Accounting
Q

r p1 p2e There are a number of theories of the term structure of interest...

Finance