Notes Evaluate Feedback Prir Course Contents » SECOND CHANCE EXAM 2 » Question 1 Timer X Company currently buys a part f

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Notes Evaluate Feedback Prir Course Contents Second Chance Exam 2 Question 1 Timer X Company Currently Buys A Part F 1 (163.32 KiB) Viewed 22 times

Notes Evaluate Feedback Prir Course Contents » SECOND CHANCE EXAM 2 » Question 1 Timer X Company currently buys a part from a supplier for $12.00 per unit but is considering making the part itself next year. Estimated costs to make the part next year are: Per-Unit Total $2.36 4.04 Direct materials Direct labor Variable overhead Fixed overhead Total 2.90 $8,260 14,140 10,150 13,650 $46,200 3.90 $13.20 Of the estimated fixed overhead, $7,371 would be additional fixed overhead costs; the remainder would be common costs allocated to the part. X Company currently receives $2,900 a year by renting out unused factory space, but it will have to use this space to make the part. This year, they purchased 3,500 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? Submit Answer Tries 0/4