Question: Help answer multiple-choice questions 1 & 2 with explanation please X Company is considering buying a part next year that it currently makes. The budgeted
Help answer multiple-choice questions 1 & 2 with explanation please
X Company is considering buying a part next year that it currently makes. The budgeted cost function to produce the part is $10.80X + $15,980, where X is the number of units produced. A company has offered to supply this part to X Company for $13.16 per unit. If X Company chooses to buy the part, it will avoid fixed costs of $8,949, and it will be able to sell some of the equipment that it used to make the part for $2,500. Last year, 3,400 units of the part were produced; next year, 3,900 units will be needed. 1. If X Company buys the part next year instead of making it, it will save OA: $736 | OB: $919 C: $1,149 D: $1,437 E: $1,796 F: $2,245 Submit Answer Tries 0/99 2. At what production level would X Company be indifferent between making and buying the part next year? OA: 3,799 OB: 4,293 OC: 4,851 OD: 5,482 OE: 6,194 OF: 7,000 Submit Answer Tries 0/99
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