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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 $26.11 per unit. This year, production was 12,000 units; next year, production is expected to be 15,850 units. Per-unit production costs for the part this year were:

Materials $11.05
Direct labor 8.29
Variable overhead 6.08
Fixed overhead 2.53
Total $27.95

$23,074 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 a company for $2,000.

X Company is uncertain about its 15,850 unit production estimate for next year. At what level of production would X Company be indifferent between making and buying the part next year?

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