One of the most popular phone accessory companies, Kingbird, has a reputation for unique designs for its phone cases. Its cases fit any If Kingbird could purchase similar quality phone cases from a supplier for $ 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 $
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. Kingbird is unsure if it should continue to manufacture the phone cases or outsource
them to simplify operations.
Manufacturing costs for Kingbird are as follows; these costs support one cycle of production that yields phone cases:
If Kingbird decides to purchase the cases, $ of the fixed MOH costs will be unavoidable.
a
Your answer is correct.
At what price would Kingbird be indifferent about making its own phone cases versus buying from a supplier? Round answer to
decimal places, eg
Price
$
per case
