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X Company is considering buying a part next year that it currently makes. The budgeted...

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Accounting

X Company is considering buying a part next year that it currently makes. The budgeted cost function to produce the part is $11.86X + $12,800, where X is the number of units produced. A company has offered to supply this part to X Comany it for $14.43 per unit. If X Company chooses to buy the part, it will avoid fixed costs of $6,400, and it will be able to lease the resources that will become available from not making the part for $2,900. 1. If X Company buys the part next year instead of making it, and production is expected to remain at 3,200 units, it will save A: $608 B: $809 C: $1,076 D: $1,431 E: $1,903 F: $2,531 Tries 0/99 2. If X Company buys the part next year instead of making it, and production next year is expected to be 3,600 units, it will save A: $48 B: $56 C: $66 D: $77 E: $90 F: $105

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