Business, 16.03.2020 20:28 breannacaraballo

Stuart Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,100 containers follows. Unit-level materials $ 5,600 Unit-level labor 6,900 Unit-level overhead 3,600 Product-level costs* 8,400 Allocated facility-level costs 26,500 *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Stuart for $2.50 each. Required Calculate the total relevant cost. Should Stuart continue to make the containers? Stuart could lease the space it currently uses in the manufacturing process. If leasing would produce $11,100 per month, calculate the total avoidable costs. Should Stuart continue to make the containers?

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