Adams Electronics currently produces the shipping containers it uses to deliver the electronics products it...
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Adams Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,400 containers follows: Unit-level materials Unit-level labor Unit-level overhead Product-level costa Allocated facility-level costs $ 6,900 6,900 3.300 9,600 27,000 *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Adams for $2.90 each. Required a. Calculate the total relevant cost. Should Adams continue to make the containers? b. Adams 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 Adams continue to make the containers? a. Total relevant cost Should Adams continue to make the containers? b. Total avoidable cost Should Adams continue to make the containers
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