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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 $27.09 per unit. This year, production was 11,500 units; next year, production is expected to be 15,000 units. Total production costs for the part this year were:

Materials $119,025
Direct labor 113,965
Variable overhead 71,530
Fixed overhead 27,485
Total $332,005

$23,912 of X Company's fixed overhead cannot be avoided even 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 $3,000.

1. If X Company continues to make the part, it will save

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