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Jordan Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,300 containers follows. Unit-level

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Jordan Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,300 containers follows. Unit-level materials $ 6, 100 Unit-level labor 6,900 Unit-level overhead 3,900 Product-level costs* 9 , 300 Allocated facility-level costs 27, 200 `One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Jordan for $2.80 each. Required es a. Calculate the total relevant cost. Should Jordan continue to make the containers? b. Jordan could lease the space it currently uses in the manufacturing process. If leasing would produce $11,500 per month, calculate the total avoidable costs. Should Jordan continue to make the containers? a. Total relevant cost ..... a. Should Jordan continue to make the containers? Yes b. Total avoidable cost b. Should Jordan continue to make the containers? No

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