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Baird Electronics currently produces the shipping containers it uses to deliver the electronics products it...

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Accounting

Baird Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,300 containers follows.
Unit-level materials $5,200
Unit-level labor 6,300
Unit-level overhead 3,200
Product-level costs*9,600
Allocated facility-level costs 26,800
*One-third of these costs can be avoided by purchasing the containers.
Russo Container Company has offered to sell comparable containers to Baird for $2.70 each.
Calculate the total relevant cost. Should Baird continue to make the containers?
Baird could lease the space it currently uses in the manufacturing process. If leasing would produce $12,100 per month, calculate the total avoidable costs. Should Baird continue to make the containers?

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