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X Company is considering buying a part next year that they currently make. This year's per-unit production costs for 3,000 units were: Materials $2.86 Direct

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

Materials $2.86
Direct labor [all variable] 3.68
Variable overhead 2.70
Fixed overhead 3.70
Total production costs $12.94

A company has offered to supply this part for $11.73 per unit. If X Company buys the part, $6,438 of the fixed overhead can be avoided. Also if X Company buys the part, it can use the freed-up resources to increase production of another product, resulting in additional contribution margin of $2,300. Production next year is also expected to be 3,000 units. At what production level would X Company be indifferent between making and buying the part?

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