Franklin 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 Unit-level labor Unit-level overhead Product-level costs Allocated facility-level costs $ 5.000 6,500 3,400 11,100 28,200 *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Franklin for $2.90 each. Required a. Calculate the total relevant cost. Should Franklin continue to make the containers? b. Franklin 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 Franklin continue to make the containers? a Total relevant cost Should Franklin continue to make the containers? Total avoidable cost Should Franklin continue to make the containers? Saved Help Save & Exit Sub Check my wor Zachary Freight Company owns a truck that cost $38,000. Currently, the truck's book value is $23,000, and its expected remaining useful life is four years. Zachary has the opportunity to purchase for $29,000 a replacement truck that is extremely fuel efficient. Fuel cost for the old truck is expected to be $6,700 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 $18,000 Required Calculate the total relevant costs. Should Zachary 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 Zachary replace or continue with the old truck? rch o tee 9 HEWLETT-PACKARD