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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 it has been making for...

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Accounting

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X Company is considering buying a part next year that it has been making for the past several years. A company has offered to supply this part for $15.88 per unit. Budgeted production next year is 50,000 units, and budgeted production costs per-unit are: Materials Direct labor Total overhead Total $5.40 5.10 5.40 $15.90 $90,000 of X Company's total overhead costs are fixed; $70,200 of the $90,000 are unavoidable even if it buys the part. If X Company continues to make the part instead of buying it next year, it will save A: $69,200 B: $78,196 C: $88,361 D: $99,848 E: $112,829 F: $127,497 Submit Answer Tries 0/99

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