X Company is considering buying a part next year that they currently make. This year's total production costs for 82,500
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X Company is considering buying a part next year that they currently make. This year's total production costs for 82,500
Company is considering buying a part next year that they currently make. This year's total production costs for 82,500 units of this part were: Materials Direct labor Variable overhead Fixed overhead Total $423,225 486,750 254,100 117,150 $1,281,225 A company has offered to supply this part for $14.49 per unit. If X Company buys the part, $70,290 of the total fixed overhead is unavoidable, and there is no alternative use of the resources that will become idle. Production next year is expected to be 86,500 units. If X Company buys the part instead of continuing to make it, it will save Submit Answer Tries 0/4
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