X Company is considering buying a part next year that they currently make. A company has offered to supply it for $13.48 per unit. This year's production costs for 3,200 units were as follows:

		Per-Unit	Total
Direct materials		$2.55	$8,160
Direct labor		4.68	14,976
Total overhead		9.20	29,440
Total costs		$16.43	$52,576

$16,960 of total overhead is fixed. If X Company chooses to buy the part, it will still incur fixed costs of $7,123.

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

A: $1,598

B: $2,317

C: $3,359

D: $4,871

E: $7,063

F: $10,241

2. If X Company buys the part next year instead of making it, and production next year is expected to be 3,600 units, it will save

A: $954

B: $1,078

C: $1,218

D: $1,377

E: $1,556

F: $1,758