X Company is considering buying a part next year that it currently makes. The budgeted cost function to produce the part is $11.06X + $18,900, where X is the number of units produced. A company has offered to supply this part to X Company for $13.53 per unit. If X Company chooses to buy the part, it will avoid fixed costs of $10,962, and it will be able to sell some of the equipment that it used to make the part for $2,200. Last year, 3,500 units of the part were produced; next year, 3,900 units will be needed.

1. If X Company buys the part next year instead of making it, it will save 2. At what production level would X Company be indifferent between making and buying the part next year?