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begin{tabular}{|l|r|} hline & Cost per bike seat hline hline Direct materials & $8 hline hline Direct labor & $4 hline Variable manufacturing

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\begin{tabular}{|l|r|} \hline & Cost per bike seat \\ \hline \hline Direct materials & $8 \\ \hline \hline Direct labor & $4 \\ \hline Variable manufacturing overhead & $2 \\ \hline Fixed manufacturing overhead & $8 \\ \hline \end{tabular} jikes. The cost to produce 400 bike seats last year were as follows: Gold Company currently manufactures the bike seats that are installed on its bikes A supplier has offered to provide Gold Company with all of its bike seat needs for $18 company decided to accept the supplier's offer. Fixed manufacturing overhead of $6 per bike would be unavoidable even if the company decided to accept the supplier's offer. Question 1. Based on this information, What is the financial advantage or disadvantage of Gold Company buying the bik 2. If the buy option is selected, the company will be able to use the freed up space produce and sell more of another product. Based on this information, what is th buying the bike seats from the supplier instead of making internally? dvantage of Gold Company buying the bike seats from the supplier instead of making intemally? ipany will be able to use the freed up space to generate an additional $2,500 of income each year to uct. Based on this information, what is the financial advantage or disadvantage of Gold Company er instead of making internally? \begin{tabular}{|l|r|} \hline & Cost per bike seat \\ \hline \hline Direct materials & $8 \\ \hline \hline Direct labor & $4 \\ \hline Variable manufacturing overhead & $2 \\ \hline Fixed manufacturing overhead & $8 \\ \hline \end{tabular} jikes. The cost to produce 400 bike seats last year were as follows: Gold Company currently manufactures the bike seats that are installed on its bikes A supplier has offered to provide Gold Company with all of its bike seat needs for $18 company decided to accept the supplier's offer. Fixed manufacturing overhead of $6 per bike would be unavoidable even if the company decided to accept the supplier's offer. Question 1. Based on this information, What is the financial advantage or disadvantage of Gold Company buying the bik 2. If the buy option is selected, the company will be able to use the freed up space produce and sell more of another product. Based on this information, what is th buying the bike seats from the supplier instead of making internally? dvantage of Gold Company buying the bike seats from the supplier instead of making intemally? ipany will be able to use the freed up space to generate an additional $2,500 of income each year to uct. Based on this information, what is the financial advantage or disadvantage of Gold Company er instead of making internally

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