Omron 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	$	7,500
Unit-level labor		8,250
Unit-level overhead		5,250
Product-level costs*		13,500
Allocated facility-level costs		33,000

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

Russo Container Company has offered to sell comparable containers to Omron for $3.00 each.

Required

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

Omron could lease the space it currently uses in the manufacturing process. If leasing would produce $8,000 per month, calculate the total avoidable costs. Should Omron continue to make the containers?