Reference no: EM133926340

Question: AP One of the most popular phone accessory companies, X Factor, 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. X Factor is unsure if it should continue to manufacture the phone cases or outsource them to simplify operations. Manufacturing costs for X Factor are as follows; these costs support one cycle of production that yields 1,200 phone cases: Costs per Cycle to Make DM $10,000 DL 5,000 Variable-MOH 3,000 Fixed-MOH (total) 75,000 If X Factor decides to purchase the cases, $60,000 of the fixed-MOH costs will be unavoidable. Required At what price would X Factor be indifferent about making its own phone cases versus buying from a supplier? What qualitative factors must also be considered in this decision? If X Factor could purchase similar quality phone cases from a supplier for $24 each, how much additional savings would it need to find in its fixed costs for this to be an equally attractive quantitative option? Get expert-level assistance in any subject with our assignment help services.