8 pt X Company is considering buying a part next year that they currently make....
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8 pt X Company is considering buying a part next year that they currently make. A company has offered to supply this part or $17.14 per unit. This year's total production costs for 58,000 units were: Materials Direct labor (all variable] Total overhead Total production costs $348,000 336,400 295,800 $980,200 Of the total overhead costs, 881,200 were fixed, and 852,780 of these fixed overhead costs were unavoidable. If X Company uys the part, the resources that were used for production can be rented out for $75,000. Production next year is expected t ncrease to 61,950 units. If X Company buys the part instead of making it, it will save AO $1,370 BO $1,822 CO $2.423 DO $3,223 EO s4287 FOss,701
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