X Company is considering buying a part next year that it currently makes. A company has offered to supply this part for $16.47 per unit. This year's total production costs for 56,000 units were:

Materials	$380,800
Direct labor	246,400
Total overhead	296,800

$201,600 of X Company's total overhead costs were variable; $32,368 of X Company's fixed overhead costs can be avoided if it buys the part. If X Company buys the part, there are no alternative uses of the resources that were used for its production. Production next year is expected to increase to 60,000 units. 3. If X Company continues to make the part instead of buying it, it will save

4. X Company has an opportunity to negotiate the purchase price with the supplier. What purchase price would make X Company indifferent between making and buying?