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 $26.37 per unit. This year, production was 14,500 units; next year, production is expected to be 18,000 units. Total production costs for the part this year were:

Materials	$151,525
Direct labor	131,080
Variable overhead	90,480
Fixed overhead	57,710
Total	$430,795

$8,079 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