Perez Electronics currently produces the shipping containers it uses to deliver the electronics products it...
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Accounting
Perez Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing containers follows.
Unitlevel materials $
Unitlevel labor
Unitlevel overhead
Productlevel costs
Allocated facilitylevel costs
Onethird of these costs can be avoided by purchasing the containers.
Russo Container Company has offered to sell comparable containers to Perez for $ each.
Required
Calculate the total relevant cost. Should Perez continue to make the containers?
Perez could lease the space it currently uses in the manufacturing process. If leasing would produce $ per month, calculate the total avoidable costs. Should Perez continue to make the containers?
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