Franklin Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,400 containers follows.

Unit-level materials	$	6,200
Unit-level labor		6,500
Unit-level overhead		4,200
Product-level costs*		9,900
Allocated facility-level costs		28,200

*One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Franklin for $2.80 each.