Rundle Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,100 containers follows.

Unit-level materials	$ 6,500
Unit-level labor	6,500
Unit-level overhead	3,200
Product-level costs*	8,400
Allocated facility-level costs	27,700

*One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Rundle for $2.90 each.

Required

A) Calculate the total relevant cost. Should Rundle continue to make the containers?

B) Rundle could lease the space it currently uses in the manufacturing process. If leasing would produce $11,100 per month, calculate the total avoidable costs. Should Rundle continue to make the containers?

a. total relevant cost
a.Should Rundle continue to make the containers
b.calculate the total avoidable costs
b. Should Rundle continue to make the containers?