A company manufactures bicycles and produces all of the parts used in production. An outside supplier has offered to sell brakes to the company, for a cost of $36 per unit. To evaluate this offer, the company, has gathered the following information relating to its own cost of producing the brakes internally: Year Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead, traceable Fixed manufacturing overhead, allocated Total cost 15,000 Units Per Per Unit $ 12 $ 180,000 12 180,000 4 60,000 6* 90,000 9 135,000 $ 43 $ 645,000 *One-third supervisory salaries; two-thirds depreciation of special equipment (no resale value). Required: 1. Assuming the company has no alternative use for the facilities that are now being used to produce the brakes, what would be the financial advantage (disadvantage) of buying 15,000 brakes from the outside supplier? 2. Suppose that if the brakes were purchased from the supplier, the company could use the freed capacity to launch a new product. The segment margin of the new product would be $150,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 15,000 brakes from the outside supplier? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assuming the company has no alternative use for the facilities that are now being used to produce the brakes, what would be the financial advantage (disadvantage) of buying 15,000 brakes from the outside supplier? Required 1 Required 2 > Required 1 Required 2 Suppose that if the brakes were purchased, the company could use the freed capacity to launch a new product. The segment margin of the new product would be $150,000 per year. Given this new assumption, what would be the financial advantage (disadvantage) of buying 15,000 brakes from the outside supplier? Required 1 Required 2