Unit$-$level materials costs $(19,000$ units $$ $$1\mathrm{.}40)(26,600)$Unit$-$level labor costs $(19,000$ units $$ $$0\mathrm{.}90)(17,100)$Unit$-$level overhead costs $(19,000$ $$0\mathrm{.}50)(9,500)$Unit$-$level selling expenses $(19,000$ $$0\mathrm{.}20)(3,800)$Contribution margin$171,000$Skin cream production supervisor$$s salary$(46,000)$Allocated portion of facility$-$level costs$(12,300)$Product$-$level advertising cost$(38,000)$Contribution to companywide income$ $74,700$

Required

Identify the cost items relevant to the make$-$or$-$outsource decision.

What is the avoidable cost per unit if the outsourcing decision is taken?$$Should Campbell continue to make the product or buy it from the supplier?

Suppose that Campbell is able to increase sales by$10,000$ units $($sales will increase to $29,000$ units$).$ Calculate the total avoidable costs. At this level of production, should Campbell make or buy the cream?