I'm not sure where you are located, and I don't know what their labor rate is. However, it does call for 9.8 hours labor. It's a big job. However, the head gasket (OEM) is under 60 dollars. I attached the flat rate for head gasket replacement on this vehicle in the pic below. The first highlighted thing is the gasket cost. Keeping in mind that there are other material costs such as coolant, cleaner, and so on. The second highlighted number shows labor, 9.8 hours. Multiply that by their hourly rate to determine cost.
Lets say they charge 100.00 an hour x 9.8 = 980.00
Head gasket +57.75
Shop materials +100.00
Aprox total 1113.75
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If you look at the labor for removing and replacing the engine, it is 8.6 hours. See pic 2
Labor 100.00 x 8.6 = 860.00
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If you subtract 860. From the 1113.75 that means they are getting you an engine for less than 254.00 dollars. To me, that doesn't sound possible. They did tell you it would be cheaper to replace the engine, so that's why I added this.
I hope it is helpful. Please let me know what happens or if you have other questions.
Take care,
Joe
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Saturday, January 11th, 2020 AT 8:09 PM