Medbury Communications Systems $($MCS$)$ produces mobile radios for arctic and other harsh environments. The costs to manufacture and market the radios at the company$$s normal quarterly volume of $14,160$ units are shown in the following table:

Unit manufacturing costs

Materials $($variable$)$ $ $80$

Labor $($variable$)120$

Overhead $($variable portion$)40$

Overhead $($fixed portion$)96$

Total unit manufacturing costs $ $336$

Unit marketing costs

Variable $40$

Fixed $112$

Total unit marketing costs $152$

Total unit costs $ $488$

Required:

Assume that no connection exists among the situations described in each question below unless otherwise stated. Each is independent. Also assume a regular selling price of $$600$ per unit unless otherwise stated. Ignore income taxes and other costs that are not mentioned in the accompanying table or in the question itself.

Complete this question by entering your answers in the tabs below.

F$1$: A proposal is received from an outside contractor who will make and ship $4,000$ radios per quarter directly to MCS$\text{'}$s customers

as orders are received from MCS$\text{'}$s sales representatives. The fixed marketing cost at MCS would be unaffected, but its

variable marketing costs would be cut by $25$ percent for these $4,000$ units produced by the contractor. The idle facilities would

be used to produce $3,200$ modified radios per month for use in high$-$security operations. These modified radios could be sold

for $$712$ each, while the costs of production would be $$432$ per unit variable manufacturing expense. Variable marketing costs

would be $$72$ per unit. Fixed marketing and manufacturing costs would be unchanged whether the original $14,160$ regular

radios were manufactured or the mix of $10,160$ regular radios plus $3,200$ modified radios 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 $$382.($Do not round intermediate calculations. Round your final answer to $2$ decimal places.$)$