You are consulting a company that manufactures cell phones. currently, the company manufactures all portions of the cell phone internally for $22 per unit ($6.85 of direct materials, $11.74 of direct labor, and $3.41 of fixed manufacturing overhead). however, the company is considered outsourcing one part of the phone, its circuit board, to an outside supplier. the supplier quoted a price of $4.50 per circuit board. if the company accepts the supplier's offer, it is estimated that the total direct materials costs would be reduced by 20% and total direct labor costs would be reduced by 15%.
a)if the company decides to outsource the circuit board, the total cost of the cell phone is $ per unit. (round to the nearest calculations)
b)should the company you are consulting accept the outside supplier's offer? why or why not?
c)the maximum price per circuit board that the company should be willing to pay the outside supplier is $ (round to the nearest calculations)