1. Calculate the cost per component for each supplier, taking into consideration the costs of the supplier-related activities and current prices and sales volume. (Note: Round the intermediate calculations to the whole number for the following activity rate "Reworking products" and "Warranty work". Round the unit cost to two decimal places.) Manzer Inc. per unit Buckner Company per unit 2a. Suppose that Bowman loses $5,056,000 in sales per year because it develops a poor reputation due to defective units attrib to failed components. Using warranty hours, assign the cost of lost sales to each supplier Manzer Buckner 2b. By how much would this change the cost of each supplier's component? Round your answers to the nearest cent. Manzer unit cost increase Buckner unit cost increase 3. Based on the analysis in Requirements 1 and 2, discuss the importance of activity-based supplier costing for internal decision making. As with product costing, accurate assignment of costs to the cost object is essential for well-grounded decision making Suppliers ca cause a firm to perform costly activities such as inspection, rework, and warranty work. The total cost of a component is thus more than its purchase price. As this example shows, the component with the higher price is actually less expensive because la Causes es demand on Internal costly activities. Thus, the company would likely decrease the purchases of the one supplier in (Previous New Check My World I. Activity Data Activity Cos Inspecting components (sampling only) $795,00 5,920,000 Reworking products (due to failed component) Warranty work (due to failed component) 12,170,000 II. Supplier Data Manzer Inc. Buckner Company Unit purchase price $89 $86 Units purchased 800,000 3,200,000 Sampling hours 80 3,920 Rework hours 360 5,640 Warranty hours 800 15,200 "Sampling inspection for Manzer's product has been reduced because the reject rate is so Required: 1. Calculate the cost per component for each supplier taking into considerat Check My Work All work saved