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Munoz 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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Munoz 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 $ 6,000 Unit-level labor 6,600 Unit-level overhead 4,100 Product-level costs 8,100 Allocated facility-level costs 26,600 'One-third of these costs can be led by purchasing the containers Russo Container Company has offered to sell comparable containers to Munoz for $2.60 each. Required 3. Calculate the total relevant cost. Should Munoz continue to make the containers? b. Munoz could lease the space it currently uses in the manufacturing process. If leasing would produce $12,000 per months, calculate the total avoidable costs. Should Munoz continue to make the containers? a Total relevant cost Should Munoz continue to make the containers? b. Total avoidable cost Should Munoz continue to make the containers? Yes No

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