Climate-Control, Inc., manufactures a variety of heating and air-conditioning units. The company is currently manufacturing all of its own component parts. An outside supplier has offered to sell a thermostat to Climate-Control for $33 per unit. To evaluate this offer, Climate-Control, Inc., has gathered the following information relating to its own cost of producing the thermostat internally:

		Per Unit		15,200 Units per year
Direct materials	$	9	$	136,800
Direct labor		11		167,200
Variable manufacturing overhead		4		60,800
Fixed manufacturing overhead, traceable		6*		91,200
Fixed manufacturing overhead, common, but allocated		13		197,600
Total cost	$	43	$	653,600

*40% supervisory salaries; 60% depreciation of special equipment (no resale value).

2a.

Suppose that if the thermostats were purchased, Climate-Control, Inc., could use the freed capacity to launch a new product. The segment margin of the new product would be$108,320 per year. Compute the total cost of making and buying theparts. (Round your Fixed manufacturing overhead per unit rate to two decimals and your final answers to the nearest dollar amount. Omit the "$" sign in your response.)

	Make	Buy
Total relevant cost (15,200 units)	$	$