Munoz Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,200 containers follows. Unit-level materials $ 5,400 Unit-level labor 6,700 Unit-level overhead 4,000 Product-level costs* 10,200 Allocated facility-level costs 27,900 *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Munoz for $2.80 each. Required Calculate the total relevant cost. Should Munoz continue to make the containers? Munoz could lease the space it currently uses in the manufacturing process. If leasing would produce $12,200 per month, calculate the total avoidable costs. Should Muno.

Munoz Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,200 containers follows. *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Munoz for $2.80 each. Required a. 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 $12,200 per month, calculate the total avoidable costs. Should Munoz continue to make the containers