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One of the most popular phone accessory companies, Vaughn, has a reputation for unique designs for its phone cases. Its cases fit any version of
One of the most popular phone accessory companies, Vaughn, 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. Vaughn is unsure if it should continue to manufacture the phone cases or outsource them to simplify operations. Manufacturing costs for Vaughn are as follows; these costs support one cycle of production that yields 1,100 phone cases: If Vaughn decides to purchase the cases, $55,430 of the fixed-MOH costs will be unavoidable. At what price would Vaughn 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 Attempts: 1 of 3 used (c) If Vaughn could purchase similar quality phone cases from a supplier for $25 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 $
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