P11-36 (similar to) E Question Help Riverside Gnome 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 trom a manutacturer in Taiwan. Data concerning the decision are: E (Click the icon to view the data.) Read the requirements Requirement 1. Should Riverside Gnome Corp manufacture the 690,000 garden tools in the Maryland facility or purchase them from the supplier in Taiwan? Explain. and the cost of purchasing The cost of manufacturing 690,000 garden lools in the Maryland facility is S 690,000 garden tools from the Taiwan supplier is S Enter any number in the edit flelds and then click Check Answer. Clear All Check Answer 3 femalning Data Table Requirements Expected annual sales of garden tools (in units) 690,000 1. Should Riverside Gnome Corp manufacture the 690,000 garden tools in the Maryland facility or purchase them from the supplier in Taiwan? Explain. Average selling price of tools $9.5 24,000 10,000 NTD = $1 $2.50 per unit Price quoted by Taiwanese company, in New Taiwanese Dollars (NTD) Current exchange rate Variable manufacturing costs 2. Riverside Gnome Corp believes that the U.S. dollar may weaken in the coming months against the New Taiwanese Dollar and does not want to face any currency risk. Assume that Riverside Gnome Corp can enter into a forward contract today to purchase 24,000 NTD for $4.40. Should Riverside Gnome Corp manufacture the 690,000 garden tools in the Maryland Incremental annual fixed manufacturing costs associated with the new product line Variable selling and distribution costsa $300,000 facility or purchase them from the Taiwan supplier? Explain. What are some of the qualitative factors that Riverside Gnome Corp should consider when deciding whether to outsource the garden tools manufacturing 3. $0.95 per unit Taiwan? $250.000 Annual fixed selling and distribution costsa aselling and distribution costs are the same regardless of whether the tools are manufactured in Maryland or imported. Print Done Print Done P11-36 (similar to) E Question Help Riverside Gnome 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 trom a manutacturer in Taiwan. Data concerning the decision are: E (Click the icon to view the data.) Read the requirements Requirement 1. Should Riverside Gnome Corp manufacture the 690,000 garden tools in the Maryland facility or purchase them from the supplier in Taiwan? Explain. and the cost of purchasing The cost of manufacturing 690,000 garden lools in the Maryland facility is S 690,000 garden tools from the Taiwan supplier is S Enter any number in the edit flelds and then click Check Answer. Clear All Check Answer 3 femalning Data Table Requirements Expected annual sales of garden tools (in units) 690,000 1. Should Riverside Gnome Corp manufacture the 690,000 garden tools in the Maryland facility or purchase them from the supplier in Taiwan? Explain. Average selling price of tools $9.5 24,000 10,000 NTD = $1 $2.50 per unit Price quoted by Taiwanese company, in New Taiwanese Dollars (NTD) Current exchange rate Variable manufacturing costs 2. Riverside Gnome Corp believes that the U.S. dollar may weaken in the coming months against the New Taiwanese Dollar and does not want to face any currency risk. Assume that Riverside Gnome Corp can enter into a forward contract today to purchase 24,000 NTD for $4.40. Should Riverside Gnome Corp manufacture the 690,000 garden tools in the Maryland Incremental annual fixed manufacturing costs associated with the new product line Variable selling and distribution costsa $300,000 facility or purchase them from the Taiwan supplier? Explain. What are some of the qualitative factors that Riverside Gnome Corp should consider when deciding whether to outsource the garden tools manufacturing 3. $0.95 per unit Taiwan? $250.000 Annual fixed selling and distribution costsa aselling and distribution costs are the same regardless of whether the tools are manufactured in Maryland or imported. Print Done Print Done
