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X Company is considering buying a part next year that they currently make. This year's production costs for 3,300 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 3,300 units were as follows:

Per-Unit Total
Direct materials $3.74 $12,342
Direct labor 3.09 10,197
Variable overhead 4.30 14,190
Fixed overhead 5.20 17,160
Total $16.33 $53,889

A company has offered to supply this part to X Company for $14.58 per unit. If X Company accepts the offer, it will still incur fixed costs of $8,923, but it will be able to lease the resources that will become available from not making the part for $3,000. At what production level would X Company be indifferent between making and buying the part next year?

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