Baird 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 $ 5,300 Unit-level labor 6,700 Unit-level overhead 3,400 Product-level costs* 7,800 Allocated facility-level costs 27,600 *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Baird for $2.60 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 $12,800 per month, calculate the total avoidable costs. Should Baird continue to make the containers?

a.	Total relevant cost
	Should Baird continue to make the containers?	Yes
b.	Total avoidable cost
	Should Baird continue to make the containers?	No