5 S Munoz Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,100 containers follows. Unit-level materials. Unit-level labor Unit-level overhead Product-level costs* Allocated facility-level costs $ 5,700 6,100 3,600 9,000 26,700 *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Munoz for $2.90 each. Required a. Calculate the total relevant cost. Should Munoz continue to make the containers? b. Munoz could lease the space it currently uses in the manufacturing process. If leasing would produce $11,300 per month, calculate the total avoidable costs. Should Munoz continue to make the containers? a. Total relevant cost Should Munoz continue to make the containers? b. Total avoidable cost Should Munoz continue to make the containers? I Yes No

Munoz Electronics currently produces the shipping containers it uses to deliver the electronics products it selis. The monthly cost of producing 9.100 containers follows. -One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Munoz for $2.90 each. Required a. Calculate the total relevant cost. Should Munoz continue to make the containers? b. Munoz could lease the space it currently uses in the manufacturing process. If leasing would produce $11,300 per month, caiculate the total avoidable costs. Should Munoz continue to make the containers