X Company currently buys a part from a supplier for $14.27 per unit but is considering making the part itself next year. This year, they purchased 3,400 units of this part; next year, they will need 3,900 units. Estimated costs to make the part next year are:

		Per-Unit	Total
Direct materials		$2.81	$9,554
Direct labor		4.10	13,940
Variable overhead		4.40	14,960
Fixed overhead		4.50	15,300
Total		$15.81	$53,754

Of the estimated fixed overhead, $9,027 would be additional fixed overhead costs; the remainder would be common costs allocated to the part. X Company currently receives $2,700 a year by renting unused factory space, but it will have to use this space to make the part.

If X Company continues to buy the part instead of making it, it will save

A. $60

B. $87

C. $126

D. $183

E. $265

F. $385