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urgent please help. thank you. Mohave Corporation is considering outsourcing production of the umbrella tote bag included with some of its products. The company has
urgent please help. thank you.
Mohave Corporation is considering outsourcing production of the umbrella tote bag included with some of its products. The company has recelved a bid from a supplier in Vietnam to produce 9,400 units per year for $8.00 each. Mohave the following information about the cost of producing tote bags: Mohave determined all variable costs could be eliminated by outsourcing the tote bags, while 70 percent of the fixed overhead cost is unavoidable. At this time, Mohove has no specific use in mind for the space currently dedicated to producing the tote bags. Required: 1. Compute the difference in cost between making and buying the umbrella tote bag. 2. Based strictly on the incremental analysis, should Mohave buy the tote bags or continue to make them? 3-a. Suppose the space Mohave currently uses to make the bags could be utilized by a new product line that would generate $6,000 in annual profits. Recompute the difference in cost between making and buying the umbrella tote bag. 3-b. Does this change your recommendation to Mohave? Complete this question by entering your answers in the tabs below. Compute the difference in cost between making and buying the umbrella tote bag. Mohave Corporation is considering outsourcing production of the umbrella tote bag included with some of its products. The company has recelved a bid from a supplier in Vietnam to produce 9.400 units per year for $8.00 each. Mohave the following information about the cost of producing tote bags: Mohave determined all variable costs could be eliminated by outsourcing the tote bags, while 70 percent of the fixed overhead cost is unavoidable, At this time, Mohave has no specific use in mind for the space currently dedicated to producing the tote bags. Required: 1. Compute the difference in cost between making and buying the umbrello tote bag. 2. Based strictly on the incremental analysis, should Mohave buy the tote bags or continue to make them? 3-a. Suppose the space Mohove curtently uses to make the bags could be utilied by a new product line that would generate $6,000 in annual profits. Recompute the difference in cost between making and buying the umbrelle tote bag. 3-b. Does this change your recommendation to Mohave? Complete this question by entering your answers in the tabs below. Based strictly on the incremental analysis, should Mohave buy the tote bags or continue to make them? Should Mahave biry the tote bags of coritinue to mike them? Mohave Corporation is considering outsourcing production of the umbrella tote bag included with some of its products. The company has recelved a bld from a supplier in Vietnam to produce 9,400 units per year for $8.00 each. Mohave the following information about the cost of producing tote bags: Mohave determined all variable costs could be eliminated by outsourcing the tote bogs, while 70 percent of the fixed overhead cost is unavoidable. At this time, Mohave has no specific use in mind for the space currently dedicated to producing the tote bags. Required: 1. Compute the difference in cost between making and buying the umbrella tote bag. 2. Based strictly on the incremental analysis, should Mohave buy the tote bags or continue to make them? 3-a. Suppose the space Mohave currently uses to make the bags could be utilized by a new product line that would generate $6.000 In annual profits. Recompute the difference in cost between making and buying the umbrela tote bag. 3-b. Does this change your recommendation to Mohave? Complete this question by entering your answers in the tabs below. Suppose the space Mohave currentiy uses to make the bags coula be utilized by a new product line that would generate $6,000 in annual profits. Recompute the oifference in cost between making and buying the umbrella tote bag. Mohave Corporation is considering outsourcing production of the umbrella tote bag included with some of its products. The company has recelved a bid from a supplier in Vietnam to produce 9,400 units per year for $8.00 each. Mohave the following information about the cost of producing tote bags: Mohave determined all variable costs could be eliminated by outsourcing the tote bags, while 70 percent of the fixed overhead cost is unavoidable. At this time, Mohave has no specific use in mind for the space currently dedicated to producing the tote bags. Required: 1. Compute the difference in cost between making and buying the umbrella tote bag. 2. Based strictly on the incremental analysis, should Mohave buy the tote bags or continue to make them? 3-a. Suppose the space Mohave currently uses to make the bags could be utilized by a new product line that would generate 36.000 in annual profits. Recompute the difference in cost between making and buying the umbrella tote bag. 3-b. Does this change your recommendation to Mohave? Complete this question by entering your answers in the tabs below. Does this change your recommendation to Mohave Step by Step Solution
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