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 it currently makes. The budgeted...

60.1K

Verified Solution

Question

Accounting

X Company is considering buying a part next year that it currently makes. The budgeted cost function to produce the part is $10.11X + $19,200, where X is the number of units produced. A company has offered to supply this part to X Comany it for $12.77 per unit. If X Company chooses to buy the part, it will avoid fixed costs of $9,600, and it will be able to lease the resources that will become available from not making the part for $2,500.

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: $1,637 B: $1,915 C: $2,240 D: $2,621 E: $3,067 F: $3,588
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: $1,347 B: $1,576 C: $1,844 D: $2,157 E: $2,524 F: $2,953

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

Algebra
1.2K views

Standard 6 PAR 7 3 Mrs Darcy puts 4 chocolate candies in a bag to...

General Management
1.2K views

Imagine receiving job offers from three great employers: Traditional ? FBI, Participative ? Southwest Airlines, Individualistic ?...

Biology
1.2K views

In his famous 1928 experiments, Griffith discovered the principle of transformation. He used strains of...

Physics
1.2K views

3 At what height above the earth s surface would the acceleration due to gravity...

Geometry
1.2K views

A 5 8 09 Review Find the value of x B 52 X 13 a...

Basic Math
1.2K views

The length, in inches, of a box is 3 inches less than twiceits width, in...

Algebra
1.2K views

Match each equation in Column I with a description of its relates to the graph...

Accounting
1.2K views

Birch Company normally produces and sells 46,000 units of RG-6 each month. The selling price...

Accounting
1.2K views

Problem 12-25 (LO 12-1) [The following information applies to the questions displayed below.]...

Accounting
1.2K views

Telephone expense paid in advance at the end of an entitys financial year will be...

Accounting
1.2K views

The units of Manganese Plus available for sale during the year were as follows: There...

Accounting
1.2K views

On July 15, Piper Co. sold $29,000 of merchandise (costing $14,500) for cash. The sales...