Jordan Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,100 containers follows:

Unit-level materials$5,700Unit-level labor6,200Unit-level overhead3,200Product-level costs*10,200Allocated facility-level costs27,500

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

Russo Container Company has offered to sell comparable containers to Jordan for $2.70 each.

Required

1. Calculate the total relevant cost. Should Jordan continue to make the containers?
2. Jordan could lease the space it currently uses in the manufacturing process. If leasing would produce $11,600 per month, calculate the total avoidable costs. Should Jordan continue to make the containers?