The following information is for the questions below:

X Company is considering buying a part next year that it currently makes. The budgeted cost function to produce the part is $9.29X + $20,400, where X is the number of units produced. A company has offered to supply this part to X Comany it for $11.85 per unit. If X Company chooses to buy the part, it will avoid fixed costs of $8,160, and it will be able to lease the resources that will become available from not making the part for $2,500.

1. If X Company buys the part next year instead of making it, and production is expected to remain at 3,400 units, it will save

A: $442

B: $642

C: $930

D: $1,349

E: $1,956

F: $2,836

2. If X Company buys the part next year instead of making it, and production next year is expected to be 3,900 units, it will save

A: $346

B: $433

C: $541

D: $676

E: $845

F: $1,056