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

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Accounting

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X Company is considering buying a part next year that it currently makes. The budgeted cost function to produce the part is $11.82X+$17,500, where X is the number of units produced. A company has offered to supply this part to X Comany it for $14.53 per unit. If X Company chooses to buy the part, it will avoid fixed costs of $7,000, and it will be able to lease the resources that will become available from not making the part for $2,800. 1. If X Company buys the part next year instead of making it, and production is expected to remain at 3,500 units, it will save \begin{tabular}{l|l|l|l|} \hline B: $315 & D: $662 & OE: \$960 & OF: \$1,392 \\ \hline \end{tabular} Tries 0/99 2. If X Company makes the part next year instead of buying it, and production next year is expected to be 3,900 units, it will save

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