Sertoma Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The

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

Loehman Container Company has offered to sell comparable containers to Sertoma for \($2.25\) each.

Required:

a. Should Sertoma continue to make the containers? Support your answer with appropriate computations.

b. Sertoma could lease the space it currently uses in the manufacturing process. If leasing would produce \($9,000\) per month, would your answer to Requirement a be different? Explain.

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Related Book For  book-img-for-question

Survey Of Accounting

ISBN: 9780077503956

1st Edition

Authors: Thomas Edmonds, Philip Olds, Frances McNair, Bor-Yi Tsay

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