Exercise $4-38($Algo$)$ Make$-$or$-$Buy Decisions $($LO $4-4)$

Coram Audio makes wireless headphones. Each pair of headphones comes with a travel case. Since its founding, Coram has manufactured its own travel cases. Recently, Holmur Travel Gear $($HTG$),$ a local outfitter that manufactures and sells backpacks, tent cases, and so on$,$ contacted Coram and proposed that they produce the headphone travel cases. Based on management experience Coram's cost per travel case is as follows $($based on annual production of $41,600$ units$).$

$\backslash$table$[[$Direct materials,$$10\mathrm{.}00$