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X Company no longer has the space necessary to produce all of its parts. A company has offered to supply one of X Company's parts

X Company no longer has the space necessary to produce all of its parts. A company has offered to supply one of X Company's parts for $26.99 per unit. This year, production was 13,500 units; next year, production is expected to be 17,000 units. Total production costs for the part this year were:

Materials $153,900
Direct labor 124,335
Variable overhead 78,840
Fixed overhead 34,425
Total $391,500

$5,508 of X Company's fixed overhead can be avoided if it buys the part. In addition, if X Company buys the part, it will be able to rent some equipment that will no longer be needed, to another company for $4,000.

If X Company buys the part instead of continuing to make it, it will save

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