Freeman Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 10,000 containers follows.

Unit-level materials	$	6,000
Unit-level labor		6,600
Unit-level overhead		4,200
Product-level costs*		10,800
Allocated facility-level costs		26,400

*One-third of these costs can be avoided by purchasing the containers.

Baxi Container Company has offered to sell comparable containers to Freeman for $2.50 each.

Required:

a-1.	Calculate the total relevant cost. (Do not round intermediate calculations.)