Thornton 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 5,700 6,900 3,600 8,700 Unit-level labor Unit-level overhead Product-level costs Allocated facility-level costs 28,000 One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Thornton for $2.90 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 $10,900 per month calculate the total avoidable costs. Should Thornton continue to make the containers? a. Total relevant cost Should Thornton continue to make the containers? b. Total avoidable cost Should Thornton continue to make the containers? Campbell Corporation, which makes and sells 79,100 radios annually, currently purchases the radio speakers it uses for $18 each. Each radio uses one speaker. The company has idle capacity and is considering the possibility of making the speakers that it needs. Campbell estimates that the cost of materials and labor needed to make speakers would be a total of $16 for each speaker. In addition supervisory salaries, rent, and other manufacturing costs would be $177,000. Allocated facility-level costs would be $99,500. Required a. Determine the change in net income Campbell would experience if it decides to make the speakers. Net income will be by