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Company currently makes 2,100 units of a unique part for one of its finished products....

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Accounting

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Company currently makes 2,100 units of a unique part for one of its finished products. Variable production costs for this part are $13.41 per unit; fixed costs associated with this part are $13,000 per year. A company has offered to supply X Company with the part for a price of $15.70 per unit. For X Company, the bad news is that it will have to inspect the parts upon arrival, requing ental of a special machine for $2,500 per year and per-unit inspection costs of $3.00. The good news is that if it buys the part, not only can it avoid all of the fixed costs associated with :he production of the part, but it can use the released production facilities to generate $15,000 per year. At what production level would X Company be indifferent between making the part and buying it

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