Rundle 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	$ 5,400
Unit-level labor	6,600
Unit-level overhead	3,800
Product-level costs*	9,900
Allocated facility-level costs	27,300

*One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Rundle for $2.80 each.

Required

Calculate the total relevant cost.

Rundle could lease the space it currently uses in the manufacturing process. If leasing would produce $12,800 per month, calculate the total avoidable costs.