X Company is considering buying a part in 2022 that it currently makes. A company has offered to supply this part to X Company for $16.05 per unit. Per-unit production costs in 2021, when production was 51,000 units, were:

Materials	$5.50
Direct labor	4.70
Total overhead	5.40
Total	$15.60

$76,500 of X Company's total overhead costs were fixed; $56,610 of these fixed costs are unavoidable even if it buys the part. If X Company buys the part, there is nothing it can do with the resources that will become idle.

Production in 2022 is expected to be 54,550 units.

If X Company continues to make the part instead of buying it in 2022, it will save … ?

Answer rating: 100% (QA)

answered this Units of 2022 54550 x Buying Cost per unit 160... View the full answer