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Foster Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,000 containers follows: Unit-level
Foster Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,000 containers follows: Unit-level materials $9,000 Unit-label labor 12,000 Unit-level overhead 7,800 Product level costs 18,000 Allocated facility-level costs 45,000 * One third of these cots could be avoided by purchasing the containers. Piazza Container Company has offered to sell comparable containers to Foster for $ 4.50 each. Required Should Foster continue to make the containers? Support your answer with appropriate computations
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