Stuart Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,000 containers follows.

Unit-level materials	$	5,100
Unit-level labor		6,700
Unit-level overhead		3,900
Product-level costs*		8,100
Allocated facility-level costs		27,000

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

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

2. Stuart could lease the space it currently uses in the manufacturing process. If leasing would produce $11,600 per month, calculate the total avoidable costs. Should Stuart continue to make the containers?