X Company currently buys a part from a supplier for $11.51 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	Total
Direct materials		$2.48	$7,936
Direct labor		3.75	12,000
Variable overhead		3.10	9,920
Fixed overhead		3.70	11,840
Total		$13.03	$41,696

Of the estimated fixed overhead, $4,026 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 $2,700; it will have to use this space to make the part. 2. If X Company will need 3,200 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?