Course Contents > EXAM 2 > Question 1 " Timer Notes Evaluate Feedback Print X Company currently buys a part from a supplier for $14.57 per unit but is considering making the part itself next year. Estimated costs to make the part next year are: Per-Unit Total Direct materials $2.40 $7,680 Direct labor 4.99 15,968 Variable overhead 4.30 13,760 Fixed overhead 5.00 16,000 Total $16.69 $53,408 Of the estimated fixed overhead, $7,520 are common costs that would be allocated to the part; the remainder would be additional fixed overhead costs. X Company currently receives $3,000 a year by renting out unused factory space, but it will have to use this space to make the part. This year, they purchased 3,200 units of this part, but they're not certain how many units they will need next year. How many units will make them indifferent between continuing to buy the part and making it? OA: 2,997 OB: 3,986 OC: 5,302 OD: 7,051 OE: 9,378 OF: 12,473 Submit Answer Tries 0/99 Communication Blocked Send Feedback