Mohave has determined that all variable costs could be eliminated by dropping production of 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. Should Mohave buy the tote bags from Willow or continue to make them? Buy Make 3-a. Suppose that the space Mohave currently uses to make the bags could be utilized by a new product line that would generate $14,000 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? Yes No