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(Solved): From where did 3.5 million come?? Let's assume that Apple, the developer of iPods, is deciding wheth ...



From where did 3.5 million come??

Lets assume that Apple, the developer of iPods, is deciding whether to continue making the earbuds that are sold with the pr
Answer:
This analysis shows that Apple should continue to make the earbuds. The company would spend \( \$ 2,000,000 \) more i
Let's assume that Apple, the developer of iPods, is deciding whether to continue making the earbuds that are sold with the product or outsource production to Skullcandy, a company that specializes in earbuds. Let's assume Apple's cost to produce 2 million earbuds each period is as shown in Exhibit 8 19. Further, Let's assume that Apple could save of fixed costs each period by outsourcing. EXHIBIT 8-19 Production Costs and Volume Let's further assume that Skullcandy is willing to provide earbuds to Apple for each. Should Apple make the earbuds or buy them from Skullcandy? ogois Pearson Education. Al rights reserved Answer: This analysis shows that Apple should continue to make the earbuds. The company would spend more in variable costs to outsource the earbuds, but only save in fixed costs. The net result is a increase in total costs if the company outsources production


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Looking at data $3,500,000 is shown in answer image under Outsource Earbuds for F
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