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Walton Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,000 containers follows Unit-level

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Walton Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,000 containers follows Unit-level materials Unit-level labor Unit-level overhead Product-level costs* Allocated facility-level costs $ 6, 400 6, 400 3, 600 7, 200 27, 900 One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Walton for $2.50 each Required a. Calculate the total relevant cost. Should Walton continue to make the containers? b. Walton 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 Walton continue to make the containers? a. Total relevant cost Should Walton continue to make the containers? b. Total avoidable cost Should Walton continue to make the containers

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