Activity-Based Supplier Costing Bowman Company manufactures cooling systems. Bowman produces all the parts necessary for its product except for one electroni component, which is purchased from two local suppliers: Manzer Inc. and Buckner Company. Both suppliers are reliable and seldom deliver late; however, Manzer sells the component for $89 per unit, while Buckner sells the same component for $86. Bowman purchases 80% of its components from Buckner because of its lower price. The total annual demand is 4,000,000 components To help assess the cost effect of the two components, the following data were collected for supplier related activities and suppliers I. Activity Data Activity Cost $690,000 7,270,000 Inspecting components (sampling only) Reworking products (due to failed component) Warranty work (due to failed component) 10,170,000 II. Supplier Data Buckner Manzer Inc. Company $89 $86 Unit purchase price Units purchased 800,000 3,200,000 80 3,920 Sampling hours 360 5,640 Rework hours Required: 1. Calculate the cost per component for each supplier, taking into consideration the costs of the supplier related activities and using he current prices and sales volume. (Note: Round the intermediate calculations to the whole number for the following activity rates Reworking products" and "Warranty work". Round the unit cost to two decimal places.) Manzer Inc. 90.07 X per unit Buckner Company per unit 20. Suppose that Bowman loses $4,176,000 in sales per year because it develops a poor reputation due to defective units attributable to failed components. Using warranty hours, assign the cost of lost sales to each supplies Manzer 200,000 X Buckner 3,700,000 X b. By how much would this change the cost of each supplier's component Round your answers to the nearest cent. Manzer unit cost increase Darr unit cost increase