Unit Manufacturing Costs: Variable materials .................. $550 Variable Labor ...................... $825 Variable overhead .................. $420 Fixed overhead ..................... $660 Total Unit Manufacturing Costs... $2,455 Unit Marketing Costs: Variable .................................... $275 Fixed ........................................ $770 Total Unit Marketing Costs............. $1,0459 Total Unit Costs .......................... $3,500 Question... A proposal is received from an outside contractor who will make 1,000 hydraulic hoist units per month and ship them directly to Hospital Supply's customers as orders are received from Hospital Supply's sales force. Hospital Supply's fixed marketing costs would be unaffected, but its variable marketing costs would be cut by 20 percent (to $220 per unit) for these 1,000 units produced by the contractor. Hospital Supply's plant would operate at two-thirds of its normal level, and total fixed manufacturing costs would be cut by 30 percent (to $1,386,000).What in -house unit cost should be used to compare with the quotation received from the supplier? Should the proposal be accepted for a price (i.e., payment to the contractor) of $2,475 per unit