( es Munoz Electronics currently produces the shipping containers it uses to deliver the electronics products it sells.

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Es Munoz Electronics Currently Produces The Shipping Containers It Uses To Deliver The Electronics Products It Sells 1 (120.79 KiB) Viewed 48 times

( es Munoz Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,300 containers follows. Unit-level materials Unit-level labor Unit-level overhead $ 5,100 6,300 3,700 9,900 28,300 Product-level costs* Allocated facility-level costs *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Munoz for $2.80 each. Required a. Calculate the total relevant cost. Should Munoz continue to make the containers? b. Munoz could lease the space it currently uses in the manufacturing process. If leasing would produce $11,500 per month, calculate the total avoidable costs. Should Munoz continue to make the containers? a Total relevant cost Should Munoz continue to make the containers? b. Total avoidable cost Should Munoz continue to make the containers?