Common costs allocated on the basis of machine-hours. tCommon costs allocated on the basis of sales dollars: Piscontinuing the bilge pump product line would not affect sales of other product lines and would have no effoct on the company's fotal general factory overheod of total Purchasing Department expenses. Required: What is the financial advantage (disadvantage) of discontinuing the bige pump product line? Express Detivery Comparty (EDC) is considering outsourcing its Payroll Department to a payroll processing company for an annual fee of \$224,000. An intemally prepared report summarizes the Payroll Department's annual operating costs as follows: EDC currently rents overfiow office spoce for $40,000 per yeer, if the company cioses its Payrol Departmient, the employees occupying the rented office space could be brought in house and the lease agreement on the rented space could be terminated with no penaity. If the Payroll Department is outsourced the payroll clerks will not be retained; nowever, the supervisor wousd be transterted to the compary's Humbn Resource Manogement Department, As a result of this transfer, the company would discontinue its efforts to hire n new Human Resource Manager that it expected to pay an annual salary of $60.000. The Payroll Department's equipment would be transfetred to other departments within the company to replace outdated equipment that would be recycled for zero salvage value. Required: What is the financial advantage (disadvantage) of outsourcing the Poyroll Deportment