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

Per-Unit Total
Direct materials $3.77 $13,195
Direct labor 3.24 11,340
Variable overhead 2.60 9,100
Fixed overhead 3.40 11,900
Total $13.01 $45,535

A company has offered to supply this part to X Company for $13.09 per unit. If X Company accepts the offer, it will avoid fixed costs of $5,950, and it will be able to lease the resources that will become available from not making the part for $2,000. At what production level would X Company be indifferent between making and buying the part next year?

A: 1,462 B: 1,828 C: 2,284 D: 2,856 E: 3,570 F: 4,462

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