Exercise 6-13A (Algo) Outsourcing decision affected by opportunity costs LO 6-3 Walton Electronics currently produces...
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Exercise 6-13A (Algo) Outsourcing decision affected by opportunity costs LO 6-3 Walton Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of oroducing 9,200 containers follows. One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Walton for $2.60 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 $12,200 per month, calculate the total avoidable costs. Should Walton continue to make the containers
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