v

Zachary Electronics currently produces the shlpping containers it uses to dellver the electronics products it sells. The monthly cost of producing 9,100 containers follows. 'One-third of these costs can be avoided by purchasing the containers, Russo Container Company has offered to sell comparabie containers to Zachary for $2.50 each. Required a. Calculate the total relevant cost. Should Zachary continue to make the containers? b. Zachary could iease the space it currently uses in the manufacturing procoss. If leasing would produce $11,700 per month, caiculate the total avoidable costs, Should Zachery comtinue to make the containers