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

Per-Unit Total
Direct materials $2.76 $8,280
Direct labor 3.75 11,250
Variable overhead 3.60 10,800
Fixed overhead 5.00 15,000
Total $15.11 $45,330

A company has offered to supply this part to X Company for $13.34 per unit. If X Company accepts the offer, it will avoid fixed costs of $7,950, and it will be able to lease the resources that will become available from not making the part for $2,300. At what production level would X Company be indifferent between making and buying the part next year?

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