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Exercise 4.38 (Algo) Make-or-Buy Decisions (LO 4-4) Ceram Audio makes wreless headphones. Each pair of headphones comes with a travel case. Since its founding. Coram

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Exercise 4.38 (Algo) Make-or-Buy Decisions (LO 4-4) Ceram Audio makes wreless headphones. Each pair of headphones comes with a travel case. Since its founding. Coram has manulactured 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, Corem's cost per trovel case is as follows (bssed on annual production of 41,200 units) HTG has offered to sell the case to Coram for $39 each. The total order would amount to 41,200 travel cases per yeat Coram's management decides that they will make the switch to HTG cases if Coram can save at least $12,600 per yeat. Accepting the offer would eliminate annual fised overhead of $78,280 Requlred: a. Prepare a schedule that shows the total differential costs. b. Should Coram continue to make the travel cases or buy them from HTG? Complete this question by entering your answers in the tabs below. Prepare a sahedule that shons the toeat differential costs. (Select option "higher" or "lower", keeping Status Quo as the base. Select 'none' if there is no effect. Coram Audio mokes wheless headphoner, Each pair of hesdohenes comes with a travel cose. Since its founding. Coram has manufactured is own travel cases. Recently, Hotmur Travel Gear (MTG) a local outitter that manufactures and sells bsckpscks, terit cases, and so on, contacted Coram and proposed that they produce the heodphone travel cases, Based on management experience. Coramis cost per travel case is as follows (based on annual production of 41,200 units) HTG has offered to sel the cave to Coram for $39 esch. The total order would amount to 41200 travel cases per yeac Coram's manogement decides that they will moke the swith to HTG cases if Covam can save at least \$12,600 per year. Accepting the offer would eliminate annual fixed overheod of 578,280 Required: a. Prepare a schedule that shows the total differential costs b. Should Coram continue to make the trovel cases of buy then from HIG? Complete this question by entering your answers in the tabs below. Snould coram continue to maie the trevel cases or buy them thom HTc

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