Calculate the total relevant cost

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Reference no: EM133927205

Problem

Outsourcing decision affected by opportunity costs- 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. Calculate the total relevant cost. Should Baird continue to make the containers? Get the instant assignment help. 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?

Reference no: EM133927205

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