Gibson Electronics currently produces the shipping containers it uses to deliver the electronics products it...
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Gibson Electronics currently produces the shipping containers it uses to deliver the electronics products it sells The monthly cost of producing 9,000 containers follows $5,300 6,880 4,000 10,200 28,400 Unit-level materials Unit-level labor Unit-level overhead Product-level costs Allocated facility-level costs *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Gibson for $2.60 each Required a. Calculate the total relevant cost Should Gibson continue to make the containers? b. Gibson could lease the space it currently uses in the manufacturing process. If leasing would produce $11.800 per month, calculate the total avoidable costs. Should Gibson continue to make the containers
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