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12. Samsung Group Co. produces 20,000 Android Galaxy mobile phone each year. The per unit cost for the Galaxy phone is $320, computed as follows:
12. Samsung Group Co. produces 20,000 Android Galaxy mobile phone each year. The per unit cost for the Galaxy phone is $320, computed as follows: DM is $109, DL is $87, Variable MOH is $43, Fixed MOH is $81 The Galaxy can be produced and purchased from an outside supplier for only $250 each. The space in which the phones are now produced would be idle and fixed production costs would be reduced by one-fourth. Based on these data, the financial advantage (disadvantage) of purchasing the phones from the outside supplier needs to be determined. Calculate the following and determine if Samsung should continue to make the Galaxy or buy them. 1. Total cost to make 2. Total cost to buy 3. Financial advantage or (disadvantage) to buy 4. Should Samsung make or buy
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