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X Company is considering buying a part next year that it currently makes. The budgeted cost function to produce the part is $10.10X + $20,400,

X Company is considering buying a part next year that it currently makes. The budgeted cost function to produce the part is $10.10X + $20,400, where X is the number of units produced. A company has offered to supply this part to X Comany it for $12.47 per unit. If X Company chooses to buy the part, it will avoid fixed costs of $8,160, and it will be able to lease the resources that will become available from not making the part for $2,200.

1. If X Company buys the part next year instead of making it, and production is expected to remain at 3,400 units, it will save ?

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