X Company is considering buying a part next year that they currently make. A company...
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Accounting
X Company is considering buying a part next year that they currently make. A company has offered to supply this part for $15.15 per unit. This year's total production costs for 59,000 units were:
| Materials | $312,700 |
| Direct labor [all variable] | 259,600 |
| Total overhead | 283,200 |
| Total production costs | $855,500 |
Of the total overhead costs, $76,700 were fixed, and $56,758 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 $75,000. Production next year is expected to increase to 63,000 units. If X Company continues to make the part instead of buying it, it will save?
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