X Company is considering buying a part next year that they currently make. A company...
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X Company is considering buying a part next year that they currently make. A company has offered to supply this part for $16.37 per unit. This year's total production costs for 56,000 units were:
| Materials | $341,600 |
| Direct labor [all variable] | 246,400 |
| Total overhead | 319,200 |
| Total production costs | $907,200 |
Of the total overhead costs, $89,600 were fixed, and $56,448 of these fixed overhead costs were unavoidable. If X Company buys the part, the resources that were used for production can be rented out for $80,000. Production next year is expected to increase to 60,350 units. If X Company buys the part instead of making it, it will save
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