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X Company is considering buying a part next year that they currently produce. A company has offered to supply this part for $14.32 per unit.

X Company is considering buying a part next year that they currently produce. A company has offered to supply this part for $14.32 per unit. This year's per-unit production costs for 54,000 units of this part were:

Materials $5.80
Direct labor [all variable] 4.50
Total overhead 4.60
Total $14.90

Total fixed overhead was $59,400, all common and unavoidable. If X Company buys the part, the resources that were used for production can be rented out for $75,000. Production next year is expected to decrease to 49,500 units.

If X Company buys the part instead of making it, it will save___?

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