YOUR Firm, Inc. expects to sell 175,000 units next year, generating total sales of $15,750,000. Problem 3 Management predicts that profit will be $1,525,000 and the contribution margin will be $25 per a. What is the total expected variable costs? $11,375,000 unit. b. What is next year's expected fixed costs? c. Compute the expected margin of safety in both units and sales dollars? 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 $7.50 each. Mohave has the following information about the cost of producing tote bags: Mohove determined all variable costs could be eliminated by outsourcing the tote bags, while 60 percent of the fixed overhead cost is unavoidable. At this time. Mohave has no specific use in mind for the space curtently 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 spoce Mohave currently uses to make the bags could be utilized by a new product line that would generate $10.000 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. Suppose the space Mohave currentiy uses to make the bags could be utilized by a new product line that would generate $10,000 in annual profits. Recompute the difference in cost between making and buving the umbrello tote bog