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Thornton Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9 , 1 0
Thornton Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of
producing containers follows.
Onethird of these costs can be avoided by purchasing the containers.
Russo Container Company has offered to sell comparable containers to Thornton for $ each.
Required
a Calculate the total relevant cost. Should Thornton continue to make the containers?
b Thornton could lease the space it currently uses in the manufacturing process. If leasing would produce $ per month,
calculate the total avoidable costs. Should Thornton continue to make the containers?
a Total relevant cost
a Should Thornton continue to make the containers?
b Total avoidable cost
b Should Thornton continue to make the containers?
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