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  3. x company currently buys a part from a supplier fo

X Company currently buys a part from a supplier for $13.24 per unit but is...

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Accounting

X Company currently buys a part from a supplier for $13.24 per unit but is considering making the part itself next year. This year, they purchased 3,200 units of this part; next year, they will need 3,600 units. Estimated costs to make the part next year are:

Per-Unit Total
Direct materials $2.83 $9,056
Direct labor 3.27 10,464
Variable overhead 4.30 13,760
Fixed overhead 6.00 19,200
Total $16.40 $52,480

Of the estimated fixed overhead, $10,176 would be additional fixed overhead costs; the remainder would be common costs allocated to the part. X Company currently receives $2,200 a year by renting unused factory space, but it will have to use this space to make the part.

If X Company continues to buy the part instead of making it, it will save

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