Island Fruit Company sells premium-quality oranges and other citrus fruits by mail order. Protecting the fruit during shipping is important so the company has designed and produces shipping boxes. The annual cost to make 70,000 boxes is (Click the icon to view the costs.) Therefore, the cost per box averages $2.71. Suppose Nelson Container submits a bid to supply Island with boxes for $2.31 per box. Island must give Nelson Container the box design specifications, and the boxes will be made according to those specs. Read the requirements. for $705,600 and is just about at the end of its 12-year life. New replacement equipment will cost $840,000 and is also expected to last 12 years. Assume $0 in residual value. In this case, how much, if any, would Island save by buying the boxes from Nelson Container? Begin by completing the table below to determine the total relevant costs of making the boxes versus purchasing the boxes from Nelson Container in this scenario. (Only complete the necessary answer boxes.) Make Buy Total relevant costs Island Fruit Company sells premium-quality oranges and other citrus fruits by mail order. Protecting the fruit during shipping is important so the company has designed and produces shipping boxes. The annual cost to make 70,000 boxes is (Click the icon to view the costs.) Therefore, the cost per box averages $2.71. Suppose Nelson Container submits a bid to supply Island with boxes for $2.31 per box. Island must give Nelson Container the box design specifications, and the boxes will be made according to those specs. Read the requirements. Requirement 3. Suppose all the fixed costs represent depreciation on equipment that was purchased for $705,600 and is just about at the end of its 12-year life. New replacement equipment will cost $840,000 and is also expected to last 12 years. Assume $0 in residual value. In this case, how much, if any, would Island save by buying the boxes from Nelson Container? Begin by completing the table below to determine the total relevant costs of making the boxes versus purchasing the boxes from Nelson Container in this scenario. (Only complete the necessary answer boxes.) Make Buy Island Fruit Company sells premium-quality oranges and other citrus fruits by mail order. Protecting the fruit during shipping is important so the company has designed and produces shipping boxes. The annual cost to make 70,000 boxes is (Click the icon to view the costs.) Therefore, the cost per box averages $2.71. Suppose Nelson Container submits a bid to supply Island with boxes for $2.31 per box. Island must give Nelson Container the box design specifications, and the boxes will be made according to those specs. Read the requirements. for $705,600 and is just about at the end of its 12-year life. New replacement equipment will cost $840,000 and is also expected to last 12 years. Assume $0 in residual value. In this case, how much, if any, would Island save by buying the boxes from Nelson Container? Begin by completing the table below to determine the total relevant costs of making the boxes versus purchasing the boxes from Nelson Container in this scenario. (Only complete the necessary answer boxes.) Make Buy Total relevant costs Island Fruit Company sells premium-quality oranges and other citrus fruits by mail order. Protecting the fruit during shipping is important so the company has designed and produces shipping boxes. The annual cost to make 70,000 boxes is (Click the icon to view the costs.) Therefore, the cost per box averages $2.71. Suppose Nelson Container submits a bid to supply Island with boxes for $2.31 per box. Island must give Nelson Container the box design specifications, and the boxes will be made according to those specs. Read the requirements. Requirement 3. Suppose all the fixed costs represent depreciation on equipment that was purchased for $705,600 and is just about at the end of its 12-year life. New replacement equipment will cost $840,000 and is also expected to last 12 years. Assume $0 in residual value. In this case, how much, if any, would Island save by buying the boxes from Nelson Container? Begin by completing the table below to determine the total relevant costs of making the boxes versus purchasing the boxes from Nelson Container in this scenario. (Only complete the necessary answer boxes.) Make Buy
