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

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One of the most popular phone accessory companies, Metlock, 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. Metlock is unsure if it should continue to manufacture the phone cases or outsource them to simplify operations. Manufacturing costs for Metlock are as follows; these costs support one cycle of production that yields 1,200 phone cases: DM Costs per Cycle to Make $10,500 DL 5,000 Variable-MOH 3,000 Fixed-MOH (total) 80,500 If Metlock decides to purchase the cases, $67,200 of the fixed-MOH costs will be unavoidable. (a) At what price would Metlock 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 One of the most popular phone accessory companies, Metlock, 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. Metlock is unsure if it should continue to manufacture the phone cases or outsource them to simplify operations. Manufacturing costs for Metlock are as follows; these costs support one cycle of production that yields 1,200 phone cases: DM Costs per Cycle to Make $10,500 DL 5,000 Variable-MOH 3,000 Fixed-MOH (total) 80,500 If Metlock decides to purchase the cases, $67,200 of the fixed-MOH costs will be unavoidable. (a) At what price would Metlock 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

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Metlocks Indifference Point To calculate the price at which Metlock would be indifferent between making and buying phone cases we need to consider the ... View the full answer