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Globalco packages small LED lights for plane instrument panels. Cost data for this packaging process are as follows:

Unit Cost
Packaging materials (e.g., boxes, bubble-wrap) $2.090
Packaging direct labor $0.656
Indirect materials (e.g., tape, labels) $0.419
Packaging supervision (variable) $0.380
Other fixed manufacturing overhead (given the number of units in the contract) $1.245
Total packaging cost $4.790


An outside supplier has offered to do all the packaging for a price of $4 per unit for all packaging-related activities if Globalco signs a one-year contract for a minimum of 148,200 units produced each year. Globalco could use the factory space now occupied by the packaging process to expand production to another product line. This expansion is expected to generate an additional $160,000 in profit per year.
 
 
What is the net relevant cost of outsourcing the packaging process after considering the profit from expanding production of another product?

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