Save by buying the part instead of making it

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Reference no: EM13792222

X Company is considering buying a part next year that they currently make. This year's total production costs for 3,200 units of this part were:

Materials $8,480

Direct labor [all variable] 11,520

Variable overhead 13,120

Fixed overhead 13,120

Total $46,240

1. If production next year is expected to be 3,600 units, how much can X Company save by buying the part instead of making it?

Reference no: EM13792222

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