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X Company is considering buying a part next year that they currently make. This year's production costs for 3,100 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 3,100 units were as follows:

Per-Unit Total
Direct materials $3.35 $10,385
Direct labor 3.90 12,090
Variable overhead 2.60 8,060
Fixed overhead 3.90 12,090
Total $13.75 $42,625

A company has offered to supply this part to X Company for $13.29 per unit. If X Company accepts the offer, it will still incur fixed costs of $6,287, but it will be able to lease the resources that will become available from not making the part for $2,100. At what production level would X Company be indifferent between making and buying the part next year?

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