X Company no longer has the space necessary to produce all of its parts. A...
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X Company no longer has the space necessary to produce all of its parts. A company has offered to supply one of X Company's parts for $27.18 per unit. This year, production was 14,500 units; next year, production is expected to be 18,400 units. Total production costs for the part this year were: Materials Direct labor Variable overhead Fixed overhead Total $166,750 135,430 82,215 39,295 $423,690 $11,788 of X Company's fixed overhead can be avoided if it buys the part. In addition, if X Company buys the part, it will be able to rent some equipment that will no longer be needed, to a company for $3,000. X Company is uncertain about its 18,400 unit production estimate for next year. At what level of production would X Company be indifferent between making and buying the part next year
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