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One of the most popular phone accessory companies, Blossom, has a reputation for unique designs for its phone cases. Its cases fit any version of
One of the most popular phone accessory companies, Blossom, has a reputation for unique designs for its phone cases. Its cases fit any version of all the prominent manufacturers' phones. The competition in this market is becoming fierce, with phone manufacturers spending big money on their own accessories. Blossom is unsure if it should continue to manufacture the phone cases or outsource them to simplify operations. Manufacturing costs for Blossom are as follows; these costs support one cycle of production that yields 1,000 phone cases: If Blossom decides to purchase the cases, $65,700 of the fixed-MOH costs will be unavoidable. (a) Your answer is correct. At what price would Blossom be indifferent about making its own phone cases versus buying from a supplier? (Round answer to 2 decimal places, e.g. 15.25.) Price $ percase If Blossom could purchase similar quality phone cases from a supplier for $26each, how much additional savings would it need to find in its fixed costs for this to be an equally attractive quantitative option? Additional savings $ eTextbook and Media
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