X Company is somewhat uncertain how many units of the part it will need next year. How many units would make the company indifferent between continuing to buy the part and making it? X Company currently buys a part from a supplier for $13.99 per unit but is considering making the part itself next year. This year, they purchased 3,200 units of this part. Estimated costs to make the part are: Per-Unit TotalDirect materials $3.72 $11,904Direct labor 4.09 13,088Variable overhead 4.10 13,120Fixed overhead 5.60 17,920Total $17.51 $56,032 Of the estimated fixed overhead, 56,989 are common costs that would be allocated to the part; the rest would be additional fixed overhead costs. X Company currently rents unused factory space to a tenant for $2,900; it will have to use thisspace to make the part.
“Struggling with a similar assignment?” We can help!!
How it works – it’s easy
Place your Order
Submit your requirements through our small easy order form. Be sure to include and attach any relevant materials.
Make a payment
The total price of your order is based on number of pages, academic level and deadline.
We assign the assignment to the most qualified tutor. When the tutor completes the assignment, it is transferred to one of our professional editors to make sure that the assignment meets all of your requirements.
Once complete, we’ll send your assignment via the email provided on the order form.