X Company is considering buying a part next year that it currently makes. The budgeted cost function to produce the part is $11.69X + $16,500, where X is the number of units produced. A company has offered to supply this part to X Comany it for $14.39 per unit. If X Company chooses to buy the part, it will still incur fixed costs of $9,900, but it will be able to lease the resources that will become available from not making the part for $2,500.

1. If X Company buys the part next year instead of making it, and production is expected to remain at 3,300 units, it will save

A: $132

B: $149

C: $168

D: $190

E: $215

F: $243

2. If X Company makes the part next year instead of buying it, and production next year is expected to be 3,700 units, it will save

A: $483

B: $546

C: $617

D: $697

E: $788

F: $890