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X Company is considering buying a part next year that they currently make. This year's production costs for 3,000 units were as follows: Per-Unit Total

X Company is considering buying a part next year that they currently make. This year's production costs for 3,000 units were as follows:

Per-Unit Total
Direct materials $3.54 $10,620
Direct labor 3.47 10,410
Variable overhead 2.80 8,400
Fixed overhead 3.90 11,700
Total $13.71 $41,130

A company has offered to supply this part to X Company for $13.10 per unit. If X Company accepts the offer, it will avoid fixed costs of $5,499, and it will be able to lease the resources that will become available from not making the part for $2,200. At what production level would X Company be indifferent between making and buying the part next year?

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