2 bow bout designadecidly for working The cost of producing the 1.500 opended each www follow Nylon bric Aluminum bing Prane Director Valable manufacturing whead $ 270,000 96,000 24,000 162,000 30,000 180.000 12 Dustin Company, a specialtyabricator of synthetic ma s, can make the needed tops of comparable 13 quity for $390 each, F.OB shipping point. Alle would fumishits own trademark insignias a unit 14 cost of $12. Transportation would be $18 per unit paid by Allen Corporation 15 16 Allen's chid accountant has prepared a cost analysis that shows that only 20% of dowhead 17 could be avoided if the tops are purchased. The tops have been made in a remote section of Allen's 18 factory building using equipment for which nem ate use is apparent in the foresonable future 22 20 Required 21 Prepare a diturundandysis showing whether or not you would recommend that the convertible togs be purchased from Dustin Company 23 . Assuming that the production capacity by purchasing the tops could be devoted to a 24 subcontracting job for another company that need a contribution map of $42,000, what mamum 25 purchase price could Allen Corporation pay for the tops? 26 Identify two important qualitative factors that Allen Corporation should consider in deciding 27 whether to purchase the needed tops 30 32 Cost of purchasing ops: Purchase price Insignia to be fumishad Transportation Toul unit cost of purchasing Numberto be purchased Toul cost of purchased teps Cost vided by purchasing tops Nylon bric Aluminum bing framan Valle manufacturing whead Find manufacturing and Toul cost wided Disadvant of purchasing Maximum purchase price to be paid Cost welded through purchasing see a) Consibution maynon v ad capacity Cost of insignia Transporton Total po d savings available for purchase price Masimum perunit purchase price