Question: Timer Notes Evaluate FeedbackPri Info X Company currently makes a part and is considering buying it from a company that has offered to supply it

 Timer Notes Evaluate FeedbackPri Info X Company currently makes a part

Timer Notes Evaluate FeedbackPri Info X Company currently makes a part and is considering buying it from a company that has offered to supply it for $20.78 per unit. This year, per-unit production costs to produce 57,000 units were: Direct materials Direct labor Overhead Total $8.50 6.50 6.50 $21.50 $256,500 of the total overhead costs were variable; $88,920 of the fixed overhead costs cannot be avoided even if X Company buys the part. If the company buys the part, the resources that are used to make it cannot be used for anything else. Production next year is expected to increase to 61,600 units If X Company continues to make the part instead of buying it, it will save Submit Answer Tries 0/3 Post Discussion Send Feedback

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