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X Company currently buys a part from a supplier for $12.67 per unit but is considering making the part itself next year. This year, they

X Company currently buys a part from a supplier for $12.67 per unit but is considering making the part itself next year. This year, they purchased 3,000 units of this part; next year, they think they will need 3,500 units. Estimated costs to make the part are:

Per-Unit Total
Direct materials $3.58 $10,740
Direct labor 3.59 10,770
Variable overhead 3.10 9,300
Fixed overhead 3.90 11,700
Total $14.17 $42,510

Of the estimated fixed overhead, $5,733 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 for $3,000; 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 ___?

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