X Company is considering buying a part next year that they currently make. This year's per-unit production costs for 3,500 units were:

Materials	$3.09
Direct labor [all variable]	4.52
Variable overhead	4.20
Fixed overhead	5.50
Total production costs	$17.31

A company has offered to supply this part for $14.12 per unit. If X Company buys the part, $10,588 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 $2,900. Production next year is also expected to be 3,500 units. 2. If X Company buys the part instead of making it, it will save

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