X Company is considering buying a part next year that it currently makes. The budgeted cost function to produce the part is $11.04X + $16,120, where X is the number of units produced. A company has offered to supply this part to X Company for $13.37 per unit. If X Company chooses to buy the part, it will still incur fixed costs of $5,964, but it will be able to sell some of the equipment that it used to make the part for $2,900. Last year, 3,100 units of the part were produced; next year, 3,400 units will be needed.

a) If X Company buys the part next year instead of making it, it will save

b) At what production level would X Company be indifferent between making and buying the part next year?