Exercise $6-13$A $($Algo$)$ Outsourcing decision affected by opportunity costs LO $6-3$

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.$\{$:$[$$$6","200],[6","100],[4","200],[11","100],[26","800]$:$\}$

$*$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\mathrm{.}80$ 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 $$10,900$ per month, calculate the total avoidable costs. Should Gibson continue to make the containers?

$\backslash$table$[[$a$.$ Total relevant cost,$],[$a$.$ Should Gibson continue to make the containers?,$],[$b$.$ Total avoidable cost,$],[$b$.$ Should Gibson continue to make the containers?,$]]$