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X Company is considering buying a part next year that they currently make. This year's production costs for 3,000 units were as follows: Per-Unit Total

X Company is considering buying a part next year that they currently make. This year's production costs for 3,000 units were as follows:

Per-Unit Total
Direct materials $3.41 $10,230
Direct labor 3.46 10,380
Variable overhead 4.20 12,600
Fixed overhead 4.80 14,400
Total $15.87 $47,610

A company has offered to supply this part to X Company for $14.22 per unit. If X Company accepts the offer, it will avoid fixed costs of $7,776, and it will be able to lease the resources that will become available from not making the part for $2,100. At what production level would X Company be indifferent between making and buying the part next year?

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