X Company is considering buying a part in 2022 that it currently makes. The budgeted cost function to produce the part is $11.71X + $10,560, where X is the number of units produced. A company has offered to supply this part to X Company for $14.15 per unit. If X Company chooses to buy the part, it will avoid fixed costs of $6,653, and it will be able to sell some of the equipment that it used to make the part for $2,200. In 2021, 3,300 units of the part were produced; in 2022, 3,600 units will be needed.

1. If X Company makes the part in 2022 instead of buying it, it will save

A: $44

B: $55

C: $69

D: $86

E: $108

F: $134

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2. At what production level would X Company be indifferent between making and buying the part in 2022?

A: 566

B: 821

C: 1,190

D: 1,726

E: 2,502

F: 3,628

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