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

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Accounting

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Campbell Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,400 containers follows: Unit-level materials Unit-level labor Unit-level overhead Product-level costs* Allocated facility-level costs $ 5,600 6,300 4,000 8,100 27,600 *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Campbell for $2.90 each. Required a. Calculate the total relevant cost. Should Campbell continue to make the containers? b. Campbell could lease the space it currently uses in the manufacturing process. If leasing would produce $12,600 per month, calculate the total avoidable costs. Should Campbell continue to make the containers? Total relevant cost Should Campbell continue to make the containers? Total avoidable cost Should Campbell continue to make the containers

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