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X Company is considering buying a part next year that they currently make. This year's production costs for 3,300 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 3,300 units were as follows:

Per-Unit Total
Direct materials $3.09 $10,197
Direct labor 4.52 14,916
Variable overhead 3.10 10,230
Fixed overhead 3.40 11,220
Total $14.11 $46,563

A company has offered to supply this part to X Company for $14.11 per unit. If X Company accepts the offer, it will avoid fixed costs of $5,161, and it will be able to lease the resources that will become available from not making the part for $2,900. At what production level would X Company be indifferent between making and buying the part next year?

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