One of the most popular phone accessory companies, Wildhorse, has a reputation for unique designs for...
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One of the most popular phone accessory companies, Wildhorse, 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. Wildhorse is unsure if it should continue to manufacture the phone cases or outsource them to simplify operations. Manufacturing costs for Wildhorse 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) (a) $10,000 5,500 3,500 74,000 If Wildhorse decides to purchase the cases, $66,400 of the fixed-MOH costs will be unavoidable. At what price would Wildhorse be indifferent about making its own phone cases versus buying from a supplier? (Round answer to 2 decimal places, e.g. 15.25.) One of the most popular phone accessory companies, Wildhorse, 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. Wildhorse is unsure if it should continue to manufacture the phone cases or outsource them to simplify operations. Manufacturing costs for Wildhorse 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) (a) $10,000 5,500 3,500 74,000 If Wildhorse decides to purchase the cases, $66,400 of the fixed-MOH costs will be unavoidable. At what price would Wildhorse be indifferent about making its own phone cases versus buying from a supplier? (Round answer to 2 decimal places, e.g. 15.25.)
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Global Marketing management
ISBN: 978-0470505748
5th edition
Authors: Masaaki Kotabe, Kristiaan Helsen
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