Business, 19.03.2021 01:00 brenda0014

Perez 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 $ 5,700 Unit-level labor 6,400 Unit-level overhead 3,500 Product-level costs* 9,300 Allocated facility-level costs 26,700 *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Perez for $2.90 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 $12,100 per month, calculate the total avoidable costs. Should Perez continue to make the containers?

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