X Company is considering buying a part next year that they currently make. This year's production costs for 3,500 units were:

X Company is considering buying a part next year that they currently make. This year's production costs for 3,500 units were: Total Per-Unit $3.36 Direct materials $11,760 Direct labor 15,680 4.48 Variable overhead 12,250 3.50 Fixed overhead 10,500 3.00 Total $14.34 $50,190 A company has offered to supply this part for $13.79 per unit. If X Company buys the part, $5,775 of the fixed overhead can be avoided. Also if X Company buys the part, it can use the freed-up resources to increase production of another product, resulting in additional contribution margin of $2,800. Production next year is expected to be 4,000 units. 2. If X Company continues to make the part instead of buying it, it will save Tries 0/3 mpany is uncertain what production will be next year. What production level would make X Company indifferent between making and buying the 3. X part? Tries 0/3