Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. x company is considering buying a part next year t

X Company is considering buying a part next year that they currently make. This year's...

90.2K

Verified Solution

Question

Accounting

image

X Company is considering buying a part next year that they currently make. This year's production costs for 3,500 units were as follows: Per-Unit $3.47 3.33 Direct materials Direct labor Variable overhead Fixed overhead Total Total $12,145 11,655 9,450 17,850 $51,100 2.70 5.10 $14.60 A company has offered to supply this part to X Company for $12.63 per unit. If X Company accepts the offer, it will still incur fixed costs of $9,282, but it will be able to lease the resources that will become available from not making the part for $2,000. At what production level would X Company be indifferent between making and buying the part next year? A: 1,802 Submit Answer B: 2,108 OC: 2,466 OD: 2,886 OE: 3,376 OF: 3,950 Tries 0/99

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students