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X Company is considering buying a part next year that it currently makes. The budgeted...

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Accounting

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X Company is considering buying a part next year that it currently makes. The budgeted cost function to produce the part is $10.37X+$9,900, where X is the number of units produced. A company has offered to supply this part to X Comany it for $13.02 per unit. If X Company chooses to buy the part, it will avoid fixed costs of $4,950, and it will be able to lease the resources that will become available from not making the part for $2,800. 1. If X Company makes the part next year instead of buying it, and production is expected to remain at 3,300 units, it will save A: $318 B: $423 C: $562 D: $748 E: $995 F: $1,323 Tries 0/99 2. If X Company makes the part next year instead of buying it, and production next year is expected to be 3,700 units, it will save A: $1,424 B: $1,609 C:$1,819D:$2,055 E: $2,322 Tries 0/99

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