Super Motors produces electric motors for sump pumps. The companys normal production volume is 2,500 motors per month. The maximum production capacity is 5,000 motors per month. The current selling price per motor is $650. The cost per unit of manufacturing and marketing the motors at the normal volume is as follows:

Costs per Unit for Sump Pump Motors

Manufacturing costs:

Direct materials

$

82

Direct labour

104

Variable overhead

21

Fixed overhead

104

Subtotal

$

311

Marketing costs:

Variable

$

32

Fixed

72

Subtotal

104

Total unit cost

$

415

2-a.

An outside contractor is willing to supply 1,250 motors at a price of $312 per unit. If the offer is accepted, the company will make 1,250 motors in-house and buy 1,250 motors from the contractor. The companys fixed manufacturing costs will decline by 30% and the variable marketing costs per unit on the 1,250 motors purchased will decline by 25%. Compute the cost in each option. (Do not round intermediate calculations.)

cost of option.. buy and make? what's their cost of options for both buy and make?