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a buy the tote bags b buy the tote bags because I would be led c make the tots bags, because I would be less
a buy the tote bags b buy the tote bags because I would be led c make the tots bags, because I would be less expensive by 53 per un d make the toto bags, because it would be less expensive by $2 per unit QUESTION 6 Fora Grove makes a variety of bags and accessories in colorful prints Flora is looking at options to help her expand and become more profitable. A local fabric shop has offered to make 1,000 of Flora's most popular tote bags for a price of S45 each Flora currently makes the bags herself with the following unit costs Direct materials $5 Died labor 534 Variable overhead $3 Fored overhead $4 Total unit cost 546 i Flora buys the bags she would be able to eliminate 25% of her fixed costs but the rest would remain. Now assume that Flora is limited to a certain number of sewing machine hours per month. To continue making the tote bags, Flora is taking up 2 hours of machine time which could be used to make a popular coin purse with a contribution margin of 55 per coin purse. The coin purses require 5 hours (30 minutes) of sewing machine time each. Now Flora should a buy the tote bags, because it would be less expensive by 521 per unit b. make the tote bags, because I would be less expensive by $2 per unit c buy the lote bags, because I would be less expensive by $3 per unit d buy the tote bags, because I would be less expensive by S18 per unit
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