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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 $25.45 per unit. This year, production was 15,000 units; next year, production is expected to be 17,600 units. Total production costs for the part this year were:

Materials $152,100
Direct labor 136,950
Variable overhead 82,800
Fixed overhead 56,700
Total $428,550

$7,938 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 a company for $3,500.

X Company is uncertain about its 17,600 unit production estimate for next year. At what level of production would X Company be indifferent between making and buying the part next year?

A: 13,572 B: 15,337 C: 17,330 D: 19,583 E: 22,129 F: 25,006

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