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X Company is considering buying a part in 2022 that it currently makes. The budgeted...

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Accounting

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X Company is considering buying a part in 2022 that it currently makes. The budgeted cost function to produce the part is $9.54X + $10,560, where X is the number of units produced. A company has offered to supply this part to X Company for $12.06 per unit. If X Company chooses to buy the part, it will avoid fixed costs of $5,914, and it will be able to sell some of the equipment that it used to make the part for $3,000. In 2021, 3,300 units of the part were produced; in 2022, 3,800 units will be needed. 1. If X Company makes the part in 2022 instead of buying it, it will save Submit Answer Tries 0/3 2. At what production level would X Company be indifferent between making and buying the part in 2022? Submit Answer Tries 0/3

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