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...

70.2K

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 $11.69X + $16,500, where X is the number of units produced. A company has offered to supply this part to X Comany it for $14.39 per unit. If X Company chooses to buy the part, it will still incur fixed costs of $9,900, but 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 3,300 units, it will save

A: $132 B: $149 C: $168 D: $190 E: $215 F: $243

2. If X Company makes the part next year instead of buying it, and production next year is expected to be 3,700 units, it will save

A: $483 B: $546 C: $617 D: $697 E: $788 F: $890

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

The distance of Josh throwing a javelin are normally distributed. What is thepercentage of these...

Algebra
Q

How do you think the safety of patients, other than COVID-19 patients, is affected by the current...

Medical Sciences
Q

A thermos contains 150cm3 of coffee at 85â—¦C. To cool the coffee, you drop two 11g ice...

Physics
Q

Which technique would you use to separate proteins by charge?a) Size exclusion chromatographyb) PCRc) Sonicationd)...

Biology
Q

Assume that GHI ALMN. Which of the following congruence statements are correct? Check all that...

Geometry
Q

assess the significance if natural disasters on project risk management

Accounting
Q

> 1. Which of the following presents a snapshot of the resources of and...

Accounting
Q

Jessich, Inc management estimates that 39% of credit sales will be collected in the month...

Accounting
Q

19. Assume that the Hood River Juice Company applies factory overhead to its production departments...

Accounting
Q

Balance in Unearned revenue at beginning of year Cash received from customers in advance of...

Accounting
Q

disney inc is in the process of evaluating its new products. a new signal receiver...

Accounting
Q

Consider the following information about stocks A, B, and C: State...

Finance