Company currently buys a part from a supplier for $13.55 per unit but is considering making the part itself next year. This year, they purchased 3,000 units of this part. Estimated costs to make the part are:

		Per-Unit	Total
Direct materials		$2.60	$7,800
Direct labor		4.75	14,250
Variable overhead		4.10	12,300
Fixed overhead		4.50	13,500
Total		$15.95	$47,850

Of the estimated fixed overhead, $5,130 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 this space to make the part. 2. If X Company will need 3,000 units again next year and continues to buy the part instead of making it, it will save

3. 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?