Problem: Module 6 Textbook Problem 6 Learning Objective: 6-3 Make appropriate outsourcing decisions Perez Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9.200 containers follows. Unit-level materials Unit-level labor Unit-level overhead Product-level costs Allocated facility-level costs $ 5,400 6,800 4,100 9,600 27,900 "One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Perez for $2.80 each. Required a. Calculate the total relevant cost. Should Perez continue to make the containers? b. Perez could lease the space it currently uses in the manufacturing process. If leasing would produce $11,700 per month, calculate the total avoidable costs. Should Perez continue to make the containers? Total relevant cost Should Perez continue to make the containers? b. Total avoidable cost Should Perez continue to make the containers?

eBook Question Content Area Extreme Sports sells logo sports merchandise. The company is contemplating whether or not to continue its custom embroidery service. All of the company’s direct fixed costs can be avoided if a segment is dropped. The information is available for the segments.   CustomEmbroidery    LogoApparel Sales $60,000        $250,000    Variable costs 29,000        110,000    Contribution margin $31,000        $140,000    Direct fixed costs 22,000        39,000    Allocated common fixed costs 13,000        49,000    Net income $(4,000)      $52,000    A. What will be the impact on net income if the embroidery segment is dropped? Net income $fill in the blank 1    B. Assume that if the embroidery segment is dropped, apparel sales will increase 10%. What is the impact on the contribution margin and net income solely for the apparel? Contribution margin $fill in the blank 3   Net income $fill in the blank 5   C. Identify one cost that is…

mabled: Exam 5 Saved Assume a company manufactures many products, one of which normally sells for $48 per unit. The company's accounting syster cost for this product: Direct materials Direct labor Manufacturing overhead Total cost Per Unit $ 18 12 10 $ 40 The company estimates that $3 of its manufacturing overhead varies with respect to the number of units produced. The remainder unaffected by the volume of units produced within the relevant range. A customer has approached the company with an offer to buy 300 units of a customized version of the product mentioned above f this order using existing manufacturing capacity. To accommodate the customer's desired product design, the company would incu per unit of $3. It would also have to buy a special tool for $580 that has no other use or resale value after the special order is compl this order will not have any effect on sales to other customers, what is the financial advantage (disadvantage) of accepting the speci Multiple Choice $(300)…

How to figure  out