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X Company currently buys a part from a supplier for $12.06 per unit but is considering making the part itself next year. This year, they

X Company currently buys a part from a supplier for $12.06 per unit but is considering making the part itself next year. This year, they purchased 3,000 units of this part; next year, they will need 3,300 units. Estimated costs to make the part next year are:

Per-Unit Total
Direct materials $2.79 $8,370
Direct labor 3.78 11,340
Variable overhead 2.60 7,800
Fixed overhead 4.10 12,300
Total $13.27 $39,810

Of the estimated fixed overhead, $5,166 are common costs that would be allocated to the part; the remainder would be additional fixed overhead costs. X Company currently receives $2,300 a year by renting unused factory space, but it will have to use this space to make the part.

If X Company makes the part instead of continuing to buy it, it will save __

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