Gibson Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,200 containers follows.

Unit-level materials	$	5,900
Unit-level labor		6,200
Unit-level overhead		3,800
Product-level costs*		10,800
Allocated facility-level costs		28,100

*One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Gibson for $2.60 each. Required

1. Calculate the total relevant cost. Should Gibson continue to make the containers?

2. Gibson could lease the space it currently uses in the manufacturing process. If leasing would produce $10,900 per month, calculate the total avoidable costs. Should Gibson continue to make the containers?