Question: Problem: Module 6 Textbook Problem 6 Learning Objective: 6-3 Make appropriate outsourcing decisions Thornton Electronics currently produces the shipping containers it uses to deliver the

 Problem: Module 6 Textbook Problem 6 Learning Objective: 6-3 Make appropriate

Problem: Module 6 Textbook Problem 6 Learning Objective: 6-3 Make appropriate outsourcing decisions Thornton Electronics currently produces the shipping containers it uses to deliver the electronics products itsells. The monthly cost of producing 9,100 containers follows. Unit-level materials $ 5,900 Unit-level labor 6,000 Unit-level overhead 3,900 Product-level costs. 9,000 Allocated facility-level costs 27,500 *One-third of these costs can be avoided by purchasing the containers Russo Container Company has offered to sell comparable containers to Thornton for $2.60 each. Required a. Calculate the total relevant cost. Should Thornton continue to make the containers? b. Thornton could lease the space it currently uses in the manufacturing process. If leasing would produce $11,200 per month, calculate the total avoidable costs. Should Thornton continue to make the containers? a Total relevant cost Should Thornton continue to make the containers? Total avoidable cost Should Thornton continue to make the containers

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