P11-36 (similar to) Question Hels Yard Gnome Corp manufactures garden tools in a factory in Taneytown, Maryland Recenty, the company designed a collection of tools for professional use rather than consumer use. Management needs to make a good decsion about whether to prow this ine in their esting space in Maryland, where space is available or to acoept an offer from a manufachuner in Tawan Data conceming the decision are (Cick the icon to view the data 1 Read the mouiements Requirement 1, Should Yard Gnome Cop manutacture the 750,000 garden tools in the Maryland faclity or purchase them trom the supplier in Tawan? Explain and the cot of purchasng The cost of manutactuning 750 000 garden tools in the Maryland taclty is 750 000 garden toos rom the Tatwan supper i Data Table arden is S Expected annual sales of garden tools (in units) Average selling price of tools Price quoted by Taiwanese company, in New Taiwanese Dollars (NTD) Current exchange rate Variable manufacturing costs Incremental annual fixed manufacturing costs associated with the new product line Variable selling and distribution costsa Annual fixed selling and distribution costsa aSelling and distribution costs are the same regardless of whether the tools are manufactured in Maryland or imported 750,000 $8 24,000 10,000 NTD $1 $2.90 per unit $340,000 $0.95 per unit $310,000 Done Print X iRequirements Should Yard Gnome Corp manufacture the 750,000 garden tools in the Maryland facility or purchase them from the supplier in Taiwan? Explain 2 1. Yard 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 Yard Gnome Corp can enter into a forward contract today to purchase 24,000 NTD for $4.50. Should Yard Gnome Corp manufacture the 750,000 garden tools in the Maryland facility or purchase them from the Taiwan supplier? Explain. What are some of the qualitative factors that Yard Gnome Corp should consider when deciding whether to outsource the garden tools manufacturing to Taiwan? 3. Print Done