One of the most popular phone accessory companies, Bramble, has a reputation for unique designs for...

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One of the most popular phone accessory companies, Bramble, 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. Bramble is unsure if it should continue to manufacture the phone cases or outsource them to simplify operations. Manufacturing costs for Bramble are as follows; these costs support one cycle of production that yields 1,000 phone cases: Costs per Cycle to Make DM DL Variable-MOH Fixed-MOH (total) $11,000 5,000 3,000 78,500 If Bramble decides to purchase the cases, $68,800 of the fixed-MOH costs will be unavoidable. At what price would Bramble 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 If Bramble 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 One of the most popular phone accessory companies, Bramble, 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. Bramble is unsure if it should continue to manufacture the phone cases or outsource them to simplify operations. Manufacturing costs for Bramble are as follows; these costs support one cycle of production that yields 1,000 phone cases: Costs per Cycle to Make DM DL Variable-MOH Fixed-MOH (total) $11,000 5,000 3,000 78,500 If Bramble decides to purchase the cases, $68,800 of the fixed-MOH costs will be unavoidable. At what price would Bramble 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 If Bramble 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

Answer rating: 100% (QA)

i We need to figure out the total cost of producing 1000 phone cases using Brambles manufacturing process and compare it to the cost of buying the pho... View the full answer