X Company is considering buying a part next year that it currently makes. This year's production costs for 3,200 units were:

		Per-Unit	Total
Direct materials		$3.18	$10,176
Direct labor		3.14	10,048
Variable overhead		3.60	11,520
Fixed overhead		5.40	17,280
Total		$15.32	$49,024

A company has offered to supply this part for $13.81 per unit. $7,603 of X Company's fixed overhead are allocated costs that will occur even if they buy the part. But if X Company buys the part, it can rent out the freed-up resources for $2,800. Production next year is expected to be 3,700 units. 1. If X Company continues to make the part instead of buying it, it will save: _________?

2. At what production level would X Company be indifferent between making and buying the part?