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Garden Growers Corp manufactures garden tools in a factory in Taneytown, Maryland. Recently, the company designed a collection of tools for professional use rather than

Garden Growers Corp manufactures garden tools in a factory in Taneytown, Maryland. Recently, the company designed a collection of tools for professional use rather than consumer use. Management needs to make a good decision about whether to produce this line in their existing space in Maryland, where space is available or to accept an offer from a manufacturer in Taiwan. Data concerning the decision are:
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Part 1
Requirement 1. Should Garden Growers Corp manufacture the 680 comma 000 garden tools in the Maryland facility or purchase them from the supplier in Taiwan? Explain.
The cost of manufacturing 680,000 garden tools in the Maryland facility is
$2,176,000
and the cost of purchasing
680,000 garden tools from the Taiwan supplier is
$1,700,000
.
Garden Growers Corp
should
purchase the garden tools from the Taiwan supplier because it is
$476,000
less
than the relevant costs to manufacture the garden tools in Maryland.
SKIP REQUIREMENT 2
Requirement 3. What are some of the qualitative factors that Garden Growers Corp should consider when deciding whether to outsource the garden tools manufacturing to Taiwan?(Select four that apply.)
Fluctuations in the value of the NTD relative to the U.S. dollar
Delivery lead times
Negative public and media reaction to not providing jobs in Maryland
Quality

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