Question: Problem: Module 6 Textbook Problem 6 tearning Objectlve: 6-3 Make appropitate outsourcing decisions Vernon Electronics currently produces the shipping containers it uses to delver the
Problem: Module 6 Textbook Problem 6 tearning Objectlve: 6-3 Make appropitate outsourcing decisions Vernon Electronics currently produces the shipping containers it uses to delver the electronics products it sells. The monthly cost of producing 9,300 containers follows. "One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offored to sell comparable containers to Ve mon for $2.80 each. Required a. Calculate the fotal relevant cost Should Vernon continue to make the containers? a. Calculate the fotal relevant cost Should Vernon continue to make the containers? b. Vernon could leaso the spoce it currently uses in the manufacturing process. If leasing would produce $12,700 per month, calculate the fotal avoidable costs. Should Vernon continue to make the containers
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