X Company is considering buying a part next year that they currently make. A company has offered to supply it for $13.27 per unit. This year's production costs for 3,300 units were as follows: Per-Unit Total Direct materials $2.89 $9,537 Direct labor 4.53 14,949 Total overhead 7.50 24,750 Total costs $14.92 $49,236 $13,200 of total overhead is fixed. If X Company chooses to buy the part, it will still incur fixed costs of $4,752.

1. If X Company buys the part next year instead of making it, and production is expected to remain at 3,300 units, it will save

A: $376 B: $425 C: $480 D: $543 E: $613 F: $693

2. If X Company makes the part next year instead of buying it, and production next year is expected to be 3,700 units, it will save

A: $59 B: $79 C: $105 D: $140 E: $186 F: $247