X Company is considering buying a part next year that it currently makes. The budgeted cost function to produce the part is $9.66X + $13,600, where X is the number of units produced. A company has offered to supply this part to X Comany it for $11.98 per unit. If X Company chooses to buy the part, it will still incur fixed costs of $6,800, but it will be able to lease the resources that will become available from not making the part for $2,900.

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

2. If X Company buys the part next year instead of making it, and production next year is expected to be 3,900 units, it will save