help

Fanning Electronics currently produces the shipping containers it uses to deliver the electronics products itsells. The monthly cost of producing 9.200 containers follows. 6.900 3,300 Unit-level materials $ 5,200 Unit-level labor Unit-level overhead Product-level costs 7,800 Allocated facility-level costs 26,400 *One-third of these costs can be avoided by purchasing the containers JEZ Note: One component of these costs.is relevant. Is it the 1/3.or the 2/3? Think this through by applying the relevancy definition! Russo Container Company has offered to sell comparable containers to Fanning for $2.80 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 $11700 per month calculate the total avoidable costs. Should Fanning continue to make the containers? 18,000 5 Yes Total relevant cost Should Fanning continue to make the containers? b Total avoidable cost Should Fanning continue to make the containers