Question: Timer Notes Evaluate Feedback Print X Company currently buys a part from a supplier for $13.15 per unit but is considering making the part itself

 Timer Notes Evaluate Feedback Print X Company currently buys a part

Timer Notes Evaluate Feedback Print X Company currently buys a part from a supplier for $13.15 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 $2.78 $8,896 Direct labor 4.07 13,024 Variable overhead 3.50 11,200 Fixed overhead 5.40 17,280 Total $15.75 $50,400 Of the estimated fixed overhead, $9,504 would be additional fixed overhead costs; the remainder would be common costs allocated to the part. X Company currently receives $2,500 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: 4,287 B: 5,702 C: 7,584 OD: 10,086 E: 13,415 OF: 17,841

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