Calculate the total relevant cost

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Question: Outsourcing decision affected by opportunity costs LO 6-3 Baird 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 $ 6,500 Unit-level labor 6,500 Unit-level overhead 3,400 Product-level costs*Footnote asterisk 8,100 Allocated facility-level costs 26,700 *Footnote asteriskOne-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Baird for $2.80 each.

Required Calculate the total relevant cost. Should Baird continue to make the containers? Baird could lease the space it currently uses in the manufacturing process. If leasing would produce $11,600 per month, calculate the total avoidable costs. Should Baird continue to make the containers? Get expert-level assistance in any subject with our assignment help services.

Reference no: EM133925942

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