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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

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

DM 3.59 11129

DL 4.89 15159

VOH 2.7 8370

FOH 3.2 9920

TOTAL 14.38 44578

A company has offered to supply this part to X Company for $14.29 per unit. If X Company accepts the offer, it will avoid fixed costs of $4,861, and it will be able to lease the resources that will become available from not making the part for $2,800.At what production level would X Company be indifferent between making and buying the part next year?

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