X Company is considering buying a part next year that it currently makes. The budgeted cost function to produce the part is $10.61X + $12,000, where X is the number of units produced. A company has offered to supply this part to X Comany it for $13.07 per unit. If X Company chooses to buy the part, it will still incur fixed costs of $6,000, but it will be able to lease the resources that will become available from not making the part for $2,600.

1. If X Company buys the part next year instead of making it, and production is expected to remain at 3,000 units, it will save

A: $519

B: $690

C: $917

D: $1,220

E: $1,623

F: $2,158

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

A: $133

B: $177

C: $236

D: $314

E: $417

F: $555