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 $25.36 per unit. This year, production was 12,500 units; next year, production is expected to be 14,500 units. Total production costs for the part this year were: Materials Direct labor $136,000 Variable overhead Fixed overhead Total 102,125 72,000 37,375 $347,500 $33,638 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. If X Company continues to make the part, it will save A: $280 B: $406 C: $589 OD: $853 OE: $1,238 OF: $1,794