Need help with 3-a Connect Question 9(of t66...

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Accounting

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Connect Question 9(of t66 points Mohave Corp. is consideringtutsourcing production of the umbrela tote bag included wth some of ts products. The company has received a bd omasuppler in Vetnam produce 8.000 per year for s7.50 each. Mohave has the following information about the cost of producing tote bags 53 Fixed manufacturing overhead Total cost per unit Mohave has determined that an variable costs could be eliminated by outsourcing the tote bags, whic 60 percent of the nored overhead cost is unavoidable this time, Mohave has no specifc use in mind for the space currently dedicated to producing the tote bags

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