X Company is considering buying a part next year that they currently make. This year's...
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X Company 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 $3.47 3.33 Direct materials Direct labor Variable overhead Fixed overhead Total Total $12,145 11,655 9,450 17,850 $51,100 2.70 5.10 $14.60 A company has offered to supply this part to X Company for $12.63 per unit. If X Company accepts the offer, it will still incur fixed costs of $9,282, but it will be able to lease the resources that will become available from not making the part for $2,000. At what production level would X Company be indifferent between making and buying the part next year? A: 1,802 Submit Answer B: 2,108 OC: 2,466 OD: 2,886 OE: 3,376 OF: 3,950 Tries 0/99
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