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 $46 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. 15,600 units per year Direct Materials $13 $202 800 Direct Labor $15 $234 000 Variable Manufacturing Overhead 2 $31 200 Fixed Manufacturing Overhead,traceable 9 $140 400 Fixed Manufacturing Overhead Common, But allocated 17 $265 200 Total Cost. 56 $873 600 

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

Assuming that the company has no alternative use for the facilities now being used to produce the thermostat, compute the total cost of making and buying theparts.