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Solomon Electronics currently produces the shipping containers It uses to producing 9000 containers follows deliver the ekectronics products & sells. The Unit-level meterials Unit-level labor
Solomon Electronics currently produces the shipping containers It uses to producing 9000 containers follows deliver the ekectronics products & sells. The Unit-level meterials Unit-level labor Unit-levelL averhead Product level costs Allocated facility-level costs 6,1 6,See 10,5e0 One third of these costs can be avoided by purchasing the containers Russo Container Company has offered to sell comparable containers to Solomon for $?60 cach Required e. Calculate the total relevant cost. Should Solomon continue to make the containers? b. Solomon could lease the space it currently uses in the manufacturing process. If leasing would pfaduce $11,x00 per month, calculate the total avoidable costs. Should Solomon continue to make the containers? Totai relevant cost Should Solomon continag to make the contaners Total avoxdable cost b Should Solomon continge to make te contaners
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