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  1. business
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  3. x company is considering buying a part next year t

X Company is considering buying a part next year that they currently make. This year's...

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Accounting

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X Company is considering buying a part next year that they currently make. This year's per-unit productiorn costs for 3,100 units were: $2.57 Materials Direct labor [all variable] Variable overhead Fixed overhead 3.20 Total production 13.64 costs 3.00 A company has offered to supply this part for $12.87 per unit. If X Company buys the part, $5,456 of the fixed overhead can be avoided. Also if X Company buys the part, it can use the freed-up resources to increase production of another product, resulting in additional contribution margin of $2,400. Production next year is also expected to be 3,100 units 2. If X Company buys the part instead of making it, it will save Submit Answer Tries 0/3 3. At what production level would X Company be indifferent between making and buying the part

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