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X Company is considering buying a part next year that they currently make. This year's production costs for 3,400 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 3,400 units were as follows:

Per-Unit Total
Direct materials $2.98 $10,132
Direct labor 3.57 12,138
Variable overhead 4.00 13,600
Fixed overhead 4.70 15,980
Total $15.25 $51,850

A company has offered to supply this part to X Company for $13.94 per unit. If X Company accepts the offer, it will avoid fixed costs of $8,629, and it will be able to lease the resources that will become available from not making the part for $2,700. At what production level would X Company be indifferent between making and buying the part next year?

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