>> Riverside Garden 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 from a manufacturer in Taiwan. Data concerning the decision are as follows: (Click the icon to view the data.) Read the requirements. O Requirement 1. Should Riverside Garden Corp manufacture the 720,000 garden tools in the Maryland facility or purchase them from the supplier in Taiwan? Explain. The cost of manufacturing 720,000 garden tools in the Maryland facility is 720,000 garden tools from the Taiwan supplier is and the cost of purchasing Data table Expected annual sales of tools (in units) Average selling price of tools Price quoted by Taiwanese company, in New Taiwanese Dollars (NTD) 720,000 10 33,800 Current exchange rate 10,400 NTD = $1 Variable manufacturing costs $3.15 per unit Incremental annual fixed manufacturing costs associated with the new product line $ 360,000 Variable selling and distribution costs Annual fixed selling and distribution costs $0.50 per unit *Selling and distribution costs are the same regardless of whether the tools are manufactured in Maryland or imported. 260,000 Print Done - Requirements 1. Should Riverside Garden Corp manufacture the 720,000 garden tools in the Maryland facility or purchase them from the supplier in Taiwan? Explain. 2. Riverside Garden 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 Garden Corp can enter into a forward contract today to purchase 33,800 NTD for $5.10. Should Riverside Garden Corp manufacture the 720,000 garden tools in the Maryland facility or purchase them from the Taiwan supplier? Explain. 3. What are some of the qualitative factors that Riverside Garden Corp should consider when deciding whether to outsource the garden tools manufacturing to Taiwan? Print Done