Course Contents >> EXAM 2 >> Question 3 Timer Notes Evaluate Feedback Print X Company no longer has the space necessary to produce all of its parts. A company has offered to supply one of X Company's parts for $26.97 per unit. This year, production was 14,000 units; next year, production is expected to be 16,500 units. Total production costs for the part this year were; Materials $163,100 Direct labor 118,440 Variable overhead 86,380 Fixed overhead 42,140 Total $410,060 $35,398 of X Company's fixed overhead cannot be avoided even if it buys the part. In addition, if X Company buys the part, it will be able to rent some equipment that will no longer be needed, to another company for $2,250. If X Company continues to make the part, it will save OA: $541 OB: $785 OC: $1,138 OD: $1,650 OE: $2,393 OF: $3,469 Submit Answer Tries 0/99 Communication Blocked Send Feedback