Fanning Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of

producing $9,000$ containers follows.

$*$One$-$third of these costs can be avoided by purchasing the containers.

Russo Container Company has offered to sell comparable containers to Fanning for $$2\mathrm{.}60$ each.

Required

a$.$ Calculate the total relevant cost. Should Fanning continue to make the containers?

b$.$ Fanning could lease the space it currently uses in the manufacturing process. If leasing would produce $$12,300$ per month,

calculate the total avoidable costs. Should Fanning continue to make the containers?

a$.$ Total relevant cost

a$.$ Should Fanning continue to make the containers?

b$.$ Total avoidable cost

b$.$ Should Fanning continue to make the containers?