Riverside Tools 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 produce this line in their existing space in Maryland, where space is available or to accept an offer from a manufacturer in Taiwan. Data conceming the decision are: E(Click the icon to view the data.) Read the reguirements Requirement 1. Should Riverside Tools Corp manufacture the 68ao,000 garden tools in the Maryland facility or purchase them from the supplier in Talwan? Explain. and the cost of purchasing The cost of manufacturing 680.000 garden tools in the Maryland facility is $ 680,000 garden tools from theo Taiwan supplier is $ Enter any number in the edit fields and then click Check Answer parts remaining Clear All Check Answer 1 Requirements Should Riverside Tools Corp manufacture the 680,000 garden tools in the Maryland facility or purchase them from the supplier in Taiwan? Explain. 1. 2. Riverside Tools 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 Tools Corp can enter into a forward contract today to purchase 24,000 NTD for $4.50. Should Riverside Tools Corp manufacture the 680,000 garden tools in the Maryland facility or purchase them from the Taiwan supplier? Explain What are some of the qualitative factors that Riverside Tools Corp should consider when deciding whether to outsource the garden tools manufacturing to Taiwan? 3. Data Table Expected annual sales of garden tools (in units) 680,000 $10.5 Average selling price of tools Price quoted by Taiwanese company, in New Taiwanese Dollars (NTD) 24,000 Current exchange rate 10,000 NTD= $1 Variable manufacturing costs $2.50 per unit $370,000 Incremental annual fixed manufacturing costs associated with the new product line $0.80 per unit Variable selling and distribution costsa $315,000 Annual fixed selling and distribution costsa aSelling and distribution costs are the same regardless of whether the tools are manufactured in Maryland or imported