Menu
support@graduatecourseshelp.com
+1(805) 568 7317

mulga electronics currently produces the shipping containers it uses to deliver the 666880

Outsourcing decision affected by opportunity costs

Mulga Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,000 containers follows.

Unit level materials

$ 5,000

Unit level labor

5,500

Unit level overhead

3,500

Product level costs*

9,000

Allocated facility level costs

22,000

Omar Container Company has offered to sell comparable containers to Mulga for $2.25 each.

Required

a. Should Mulga continue to make the containers? Support your answer with appropriate computations.

b. Mulga could lease the space it currently uses in the manufacturing process. If leasing would produce $9,000 per month, would your answer to Requirement a be different? Explain.

"Order a similar paper and get 15% discount on your first order with us
Use the following coupon
"GET15"

Order Now