Zachary Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,300 containers follows:

Unit-level materials	$	6,600
Unit-level labor		6,300
Unit-level overhead		4,100
Product-level costs*		9,900
Allocated facility-level costs		26,800

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

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

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

Zachary could lease the space it currently uses in the manufacturing process. If leasing would produce $12,000 per month, calculate the total avoidable costs. Should Zachary continue to make the containers?