Mohave Corporation is considering outsourcing production of the umbrella tote bag included with sorre of its products. The company has received a bid from a supplier in Vietnam to produce 9.500 units per year for $10,00 each. Mohove the following information about the cost of producing tote bags: Mohave determined all variable costs could be eliminated by outsourcing the tote bags, while 75 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. Required: 1. Compute the difference in cost between making and buying the umbrella tote bag 2. Based strictly on the incremental analysis, should Mohave buy the tote bags or continue to make them? 3-a. Suppose the space Mohave currently uses to make the bags could be utilized by a new product line that would generate $6,000 in annual profits. Recompute the difference in cost between making and buying the umbrella tote bag. 3-b. Does this change your recommendation to Mohave? Complete this question by entering your answers in the tabs below. Compute the difference in cost between making and buying the umbrelia tote bag. Mohave Corporation is considering outsourcing production of the umbrella tote bag included with some of its products. The compary has received a bid from a supplier in Vietnam to produce 9,500 units per year for $10,00 each. Mohave the following information about the cost of producing tote bags: Mohave determined all variable costs could be eliminated by outsourcing the tote bags, while 75 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: Required: 1. Compute the difference in cost between making and buying the umbrella tote bag. 2. Based strictly on the incremental analysis, should Mohave buy the tote bags or continue to make them? 3-a. Suppose the space Mohave currently uses to make the bags could be utilized by a new product line that would generate $6,000 in annual profits. Recompute the difference in cost between making and buying the umbrella tote bag. 3-b. Does this change your recommendation to Mohave? Complete this question by entering your answers in the tabs below. Suppose the space Mohave curlently uses to make the bags could be utilized by a new product line that would generate $6,000 in annual profits, Recompute the difference in cost between making and buying the umbrella tote bag. Mohave Corporation is considering outsourcing production of the umbrella tote bag included with some of its products. The company has received a bid from a supplier in Vietnam to produce 9,500 units per year for $10.00 each. Mohave the following information about the cost of producing tote bags: Mohave determined all variable costs could be eliminated by outsourcing the tote bags, while 75 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 Required: 1. Compute the difference in cost between making and buying the umbrella tote bag. 2. Based strictly on the incremental analysis, should Mohave buy the tote bags or continue to make them? 3-0. Suppose the space Mohave currently uses to make the bags could be utilized by a new product line that would generate $6,000 in annual profits. Recompute the difference in cost between making and buying the umbrella tote bag. 3-b. Does this change your recommendation to Mohave? Complete this question by entering your answers in the tabs below. Does this change your recommendation to Mohave? Mohave Corporation is considering outsourcing production of the umbrella tote bag included with some of its products. The company has received a bid from a supplier in Vietnam to produce 9.500 units per year for $10.00 each. Mohave the following information aboi the cost of producing tote bags: Mohave determined ali variable costs could be eliminated by outsourcing the tote bags, while 75 percent of the fixed overhead cost is unavoldable. At this time, Mohave has no specific use in mind for the space currently dedicated to producing the tote bags. Required: 1. Compute the difference in cost between making and buying the umbrella tote bag. 2. Based strictly on the incremental analysis, should Mohave buy the tote bags or continue to make them? 3-a. Suppose the space Mohave currently uses to make the bags could be utilized by a new product line that would generate $6.000 in annual profits. Recompute the difference in cost between making and buying the umbrella tote bag. 3-b. Does this change your recommendation to Mohave? Complete this question by entering your answers in the tabs below. Based strictly on the incremental analysis, should Mohave buy the tote bags or continue to make them? Shoudd Mohne buy the tote begs of contifue to mote them
