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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 $8,51X+$18,600, where X is the number of units produced, A company has offered to supply this part to X Comany it for $11.21 per unit. If X Company chooses to buy the part, it will still incur fixed costs of $9,300, but 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 3,100 units, it will save B: $3,730 C: 54,215 D:$4,763O:$5,382 O F: $6,082 Tries 0/99 2. If X Company buys the part next year instead of making it, and production next year is expected to be 3,500 units, it will save B: $3,312 C: $4,141 D: $5,176 E: $6,470

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