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See below: Yard Gnome Corp manufactures garden tools in a factory in Taneytown, Maryland. Recently, the company designed a collection of tools for professional use

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Yard 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 from a manufacturer in Taiwan. Data concerning the decision are as follows: a (Click the icon to view the data.) Read the @uirements. Requirement 1. Should Yard Gnome Corp manufacture the 670,000 garden tools in the Maryland facility or purchase them from the supplier in Taiwan? Explain. The cost of manufacturing 670,000 garden tools in the Maryland facility is :l and the cost of purchasing 670,000 garden tools from the Taiwan supplier is Expected annual sales of tools (in units) 670,000 Average selling price of tools $ 7 Price quoted by Taiwanese company, in New Taiwanese Dollars (NTD) 33,800 Current exchange rate 10,400 NTD = $1 Variable manufacturing costs $3.00 per unit Incremental annual fixed manufacturing costs associated with the new product line $ 350,000 Variable selling and distribution costs $0.60 per unit Annual fixed selling and distribution costs $ 240,000 *Selling and distribution costs are the same regardless of whether the tools are manufactured in Maryland or imported

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