X Company is considering buying a part next year that they currently make. This year's production costs for 3,200 units were as follows:

		Per-Unit	Total
Direct materials		$3.92	$12,544
Direct labor [all variable]		4.40	14,080
Variable overhead		4.20	13,440
Fixed overhead		4.70	15,040
Total		$17.22	$55,104

A company has offered to supply this part to X Company for $14.86 per unit. If X Company accepts the offer, it will avoid fixed costs of $7,821, and it will be able to lease the resources that will become available from not making the part for $2,600. Next year's expected production level is 3,700 units. 11. If X Company buys the part next year instead of making it, it will save

12. At what production level would X Company be indifferent between making and buying the part next year