B Company is considering buying a part next year that they currently make. A company has offered to supply it for $15.20 per unit. This year's production costs for 3,500 units were as follows:

		Per-Unit	Total
Direct materials		$4.00	$14,000
Direct labor		4.27	14,945
Total overhead		9.80	34,300
Total costs		$18.07	$63,245

$18,900 of total overhead is fixed. If B Company chooses to buy the part, it will avoid fixed costs of $11,718.

1. If B Company buys the part next year instead of making it, and production is expected to remain at 3,500 units, it will save how much?

2. If B Company buys the part next year instead of making it, and production next year is expected to be 4,000 units, it will save how much?