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X Company currently buys a part from a supplier for $14.01 per unit but is considering making the part itself next year. This year, they

X Company currently buys a part from a supplier for $14.01 per unit but is considering making the part itself next year. This year, they purchased 3,300 units of this part; next year, they will need 3,600 units. Estimated costs to make the part next year are:

Per-Unit Total
Direct materials $3.03 $9,999
Direct labor 4.45 14,685
Variable overhead 3.80 12,540
Fixed overhead 5.70 18,810
Total $16.98 $56,034

Of the estimated fixed overhead, $9,593 would be additional fixed overhead costs; the remainder would be common costs allocated to the part. X Company currently receives $2,000 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

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