Make or buy N back 7. Mohave Corp. is considering outsourcing production of the umbre utsourcing production of the umbrella tote bag ciuded with some of its products. The company has received a bid from a supplier vetham to produce 8,000 units per year for $7.50 each, Mohave has the following information about the cost of producing tote bags: $3 - 2 - Ched problem Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Total cost per unit Mohave has determined that all variable costs could be eliminated by outsourcing the tote bags, while 60 percent of the fixed overhead cost is unavoidable. At this time, Mohave has no specific use in mind for the space currently dedicated to producing the tote bags. a. Should Mohave make or buy the umbrella tote bag? Support your answer with calculations