Davis Kitchen Supply produces stoves for commercial kitchens. The costs to manufacture and market the stoves at the company's normal volume of 6,000 units per month are shown in the following table.

Unit manufacturing costs
Variable materials	$	41
Variable labor		66
Variable overhead		16
Fixed overhead		51
Total unit manufacturing costs				$	174
Unit marketing costs
Variable		16
Fixed		61
Total unit marketing costs					77
Total unit costs				$	251

Unless otherwise stated, assume that no connection exists between the situation described in each question; each is independent. Unless otherwise stated, assume a regular selling price of $408 per unit. Ignore income taxes and other costs that are not mentioned in the table or in the question itself.

A proposal is received from an outside contractor who will make and ship 2,000 stoves per month directly to Daviss customers as orders are received from Daviss sales force. Daviss fixed marketing costs would be unaffected, but its variable marketing costs would be cut by 30 percent for these 2,000 units produced by the contractor. Daviss plant would operate at two-thirds of its normal level, and total fixed manufacturing costs would be cut by 40 percent. What in-house unit cost should be used to compare with the quotation received from the supplier? Assume the payment to the outside contractor is $206. (Round your answer to 2 decimal places.)

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In-house cost savings

per unit

A proposal is received from an outside contractor who will make and ship 2,000 stoves per month directly to Daviss customers as orders are received from Daviss sales force. Daviss fixed marketing costs would be unaffected, but its variable marketing costs would be cut by 30 percent for these 2,000 units produced by the contractor. The idle facilities would be used to produce 1,600 modified stoves per month for use in extreme climates. These modified stoves could be sold for $441 each, while the costs of production would be $266 per unit variable manufacturing expense. Variable marketing costs would be $41 per unit. Fixed marketing and manufacturing costs would be unchanged whether the original 6,000 regular stoves were manufactured or the mix of 4,000 regular stoves plus 1,600 modified stoves were produced. What in-house unit cost should be used to compare with the quotation received from the outside contractor? Assume the payment to the outside contractor is $206. (Round your answer to 2 decimal places.)

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In-house cost savings

per unit