X Company currently makes a part and is considering buying itfrom a company that has offered to supply it for $19.45 per unit.This year, per-unit production costs to produce 54,000 unitswere:
| Direct materials | $8.50 |
| Direct labor | 6.50 |
| Overhead | Â Â Â 4.10 |
| Total | Â Â Â $19.10 |
$167,400 of the total overhead costs were variable; $39,960 of thefixed overhead costs cannot be avoided even if X Company buys thepart. If the company buys the part, the resources that are used tomake it cannot be used for anything else. Production next year isexpected to increase to 57,400 units.
If X Company continues to make the part instead of buying it, itwill save _______
