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QUESTION 3 The Ostrich Corporation (Ostrich) manufactures mobile phones. Ostrich manufactures 8,000 phones in 40 batches of 200 each. Ostrich expects to produce the same

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QUESTION 3 The Ostrich Corporation (Ostrich) manufactures mobile phones. Ostrich manufactures 8,000 phones in 40 batches of 200 each. Ostrich expects to produce the same number of phones in 2020. Ostrich reports the following cost information about the costs of making mobile phones in 2019. Direct materials per phone $180 Direct manufacturing labour cost per phone $50 Variable MOH per batch $1,600 Avoidable Fixed MOH $320,000 Unavoidable Pixed MOH $800,000 At the beginning of 2020, the Emu Corporation (Ena) approaches the Ostrich and offers to sell them 8,000 phones that are identical in quality to the mobiles that they make for $306 per mobile on whatever delivery schedule Ostrich requires. On financial considerations alone, which of the following statement is correct? 2.Ostrich can save $560,000 by outsourcing the mobile production to Enu. b. Ostrich can save $176,000 by outsourcing the mobile produktion to Emu. Costrich is better oft by $176,000 to nake the phone thenselves. d.ostrich is better off by $224,000 to make the phone themselves. Ostrich can save $558,400 by outsourcing the mobile production to Enu

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