Al-Nour Company has been manufacturing its own part Z100 that is used in producing its final product. The cost of manufacturing 12,000 parts of Z100 is summarized below. Direct materials Direct labor Variable factory overhead Fixed factory overhead Total manufacturing costs $2.08 $1.50 $0.92 $1.42 $5.92 A supplier offers to produce part Z100 that Al-Nour needs for $5.30. If the offer is accepted, the supplier will charge shipping costs of $0.42 per unit. If the company decides to buy from the supplier, 60% of the fixed factory overhead which represents factory equipment depreciation and supervisor's salary will continue to be paid by Al-Nour Company. Required: (Show all your calculations) (Answers should be to two decimal places) a. What is the financial advantage (disadvantage) of accepting the outside supplier's offer? (2 Marks) b. Would Al-Nour company be financially better off to buy part Z100 from an outside supplier or continue making it? And why? (0.5 Mark) C. Suppose that if the company chooses to buy part Z100, the space that would have been used to manufacture part Z100 can be rented out to a tenant for $8,500. In addition, assume that the supplier's offer to produce part Z100 is $6.20 per unit, and the shipping costs are $0.70 per unit. In this case, what is the financial advantage (disadvantage)

Al-Nour Company has been manufacturing its own part Z100 that is used in producing its final product. The cost of manufacturing 12,000 parts of Z100 is summarized below. A supplier offers to produce part Z100 that Al-Nour needs for \$5.30. If the offer is accepted, the supplier will charge shipping costs of $0.42 per unit. If the company decides to buy from the supplier, 60% of the fixed factory overhead which represents factory equipment depreciation and supervisor's salary will continue to be paid by Al-Nour Company. Required: (Show all your calculations) (Answers should be to two decimal places) a. What is the financial advantage (disadvantage) of acepting the outside supplier's offer? (2 Marks) b. Would Al-Nour company be financially better off to buy part Z100 from an outside supplier or continue making it? And why? (0.5 Mark) C. Suppose that if the company chooses to buy part Z100, the space that would have been used to manufacture part Z100 can be rented out to a tenant for $8,500. In addition, assume that the supplier's offer to produce part Z100 is $6.20 per unit, and the shipping costs are $0.70 per unit. In this case, what is the financial advantage (disadvantage) Required: (Show all your calculations) (Answers should be to fwo decimal places) a. What is the financial advantage (disadvantage) of accepting the outside supplier's offer? (2 Marks) b. Would Al-Nour company be financially better off to buy part Z100 from an outside supplier or continue making it? And why? (0.5 Mark) C. Suppose that if the company chooses to buy part Z100, the space that would have been used to manufacture part Z100 can be rented out to a tenant for $8,500. In addition, assume that the supplier's offer to produce part Z100 is $6.20 per unit, and the shipping costs are $0.70 per unit. In this case, what is the financial advantage (disadvantage) of accepting the outside supplier's offer? (2 Marks) d. Based on requirement (c), would Al-Nour company be financially better off to buy part Z100 from an outside supplier or continue making it? And why? (0.5 Mark) Al-Nour Company has been manufacturing its own part Z100 that is used in producing its final product. The cost of manufacturing 12,000 parts of Z100 is summarized below. A supplier offers to produce part Z100 that Al-Nour needs for $5.30. If the offer is accepted, the supplier will charge shipping costs of $0.42 per unit. If the company decides to buy from the supplier, 60% of the fixed factory overhead which represents factory equipment depreciation and supervisor's salary will continue to be paid by Al-Nour Company. Required: (Show all your calculations) (Answers should be to two decimal places) a. What is the financial advantage (disadvantage) of accepting the outside supplier's offer? (2 Marks) b. Would Al-Nour company be financially better off to buy part Z100 from an outside supplier or continue making it? And why? (0.5 Mark) C. Suppose that if the company chooses to buy part Z100, the space that would have been used to manufacture part Z100 can be rented out to a tenant for $8,500. In addition, assume that the supplier's offer to produce part Z100 is $6.20 per unit, and the shipping costs are $0.70 per unit. In this case, what is the financial advantage (disadvantage)