X Company is considering buying a part next year that it currently makes. The budgeted cost function to produce the part is $9.42X + $16,000, where X is the number of units produced. A company has offered to supply this part to X Company it for $12.01 per unit. If X Company chooses to buy the part, it will still incur fixed costs of $9,600, but it will be able to lease the resources that will become available from not making the part for $2,100.

1. If X Company buys the part next year instead of making it, and production is expected to remain at 3,200 units, it will save 2. If X Company makes the part next year instead of buying it, and production next year is expected to be 3,500 units, it will save