Question: Please show work and be specific.Thank you so much in advance. Sunshine Fruit Co. makes its own shipping boxes. The annual cost to make 80,000
Please show work and be specific.Thank you so much in advance.

Sunshine Fruit Co. makes its own shipping boxes. The annual cost to make 80,000 boxes is: Materials $150,000 Labor 25,000 Indirect Manufacturing Costs Variable 19,000 Fixed 70,000 Total $264,000 Suppose Mayerhouser offers to sell them boxes for $2.60 per box How much, if any, will Sunshine Fruit save by buying the boxes? Suppose that all the above fixed costs are depreciation for equipment purchased at $600,000 which is at the end of its 10-year life. New replacement equipment will cost $800,000 and have a 10-year life also. How much, if any, will Sunshine Fruit save by buying the boxes under these circumstances
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