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One of the most popular phone accessory companies, Bonita, has a reputation for unique designs for its phone cases. Its cases fit any version
One of the most popular phone accessory companies, Bonita, 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. Bonita is unsure if it should continue to manufacture the phone cases or outsource them to simplify operations. Manufacturing costs for Bonita are as follows; these costs support one cycle of production that yields 1,200 phone cases: DM Costs per Cycle to Make $11,000 DL 5,500 Variable-MOH 3,000 Fixed-MOH (total) 70,000 If Bonita decides to purchase the cases, $56,740 of the fixed-MOH costs will be unavoidable. (a) Your answer is incorrect. At what price would Bonita be indifferent about making its own phone cases versus buying from a supplier? (Round answer to 2 decimal places, e.g. 15.25.) Price $ per case eTextbook and Media Save for Later Last saved 19 hours ago. Saved work will be auto-submitted on the due date. Auto- submission can take up to 10 minutes. Assistance Used Attempts: 1 of 3 used Submit Answer (c). If Bonita could purchase similar quality phone cases from a supplier for $24 each, 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 Attempts: 0 of 3 used Submit Answer Save for Later
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