PA$7-2($Static$)$ Analyzing Make$-$or$-$Buy Decision $[$LO $7-2,7-4]$

Mohave Corporation is considering outsourcing production of the umbrella tote bag included with some of its products. The company received a bid from a supplier in Vietnam to produce $8,000$ units per year for $$7\mathrm{.}50$ each. Mohave has the following information about the cost of producing tote bags:

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