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Campbell Electronics currently produces the shipping containers it uses to deliver the electronics products itselts. The monthly cost of producing 9,100 containers follows Unit-level materials

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Campbell Electronics currently produces the shipping containers it uses to deliver the electronics products itselts. The monthly cost of producing 9,100 containers follows Unit-level materials $ 5,800 Unit-level labor 6,700 Unit-level overhead 3,500 Product-level cotta 7, BD Allocated facility-level costs 27, 100 'One third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Campbell for $270 each Required a. Calculate the total relevant cost. Should Campbell continue to make the containers? b. Campbell could lease the space it currently uses in the manufacturing process. If leasing would produce $11700 per month calculate the total avoidable costs. Should Campbell continue to make the containers Total relevant cost Should Campbell continue to make the container Total voidable cost Should Campbell continue to make the containera? Campbell Freight Company owns a truck that cost $42,000. Currently, the truck's book value is $25,000, and its expected remaining useful life is five years. Campbell has the opportunity to purchase for $29,800 a replacement truck that is extremely fuel efficient. Fuel cost for the old truck is expected to be $6,300 per year more than fuel cost for the new truck. The old truck is paid for but, in spite of being in good condition, can be sold for only $11,000. Required Calculate the total relevant costs. Should Campbell replace the old truck with the new fuel-efficient model, or should it continue to use the old truck until it wears out? Keep Old Replace with New Total relevant costs Should Campbell replace or continue the old truok

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