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Pace Electronics currently produces the shipping containers it uses to deliver the electronics products it sells the monthly cost of producing 9,000 containers is
Pace Electronics currently produces the shipping containers it uses to deliver the electronics products it sells the monthly cost of producing 9,000 containers is as follows. DM DL Variable OH Fixed OH $6,000 6,600 4,200 37,200 $54,000 Ace Container Co. has offered to sell comparable containers to Pace for $2.70 each. If Pace buys the containers is will avoid $3,600 in fixed costs. Required 1 (10 points) Use incremental analysis to decide whether Pace should continue to make the containers. 2 (5 points) Pace has an offer to lease the space it currently uses to make the containers for $10,000 per month. Use incremental analysis to decide if your answer to part 1 would change.
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