Donaldson is the owner of Best Bikes, a company that produces high quality cross-country bicycles. Best Bikes partic rs, and elite bicycle shops. For several years Best Bikes has purchased titanium from suppliers in the supply chain. Be an other metals and therefore increases the quality of the bicycle. Earlier this year, Best Bikes hired Michael Fielding, a pelieved that he could reduce costs if he purchased titanium from an online marketplace at a lower price. ik the icon to view the standard and actual information.) Requirements 1. Compute the direct materials price and efficiency variances. 2. What factors can explain the variances identified in requirement 1 ? Could any other variances be affected? 3. Was switching suppliers a good idea for Best Bikes? Explain why or why not. 4. Should Michael Fielding's performance evaluation be based solely on price variances? Should the production manager's evaluation be based solely on efficiency variances? Why is it important for Katharine Donaldson to understand the causes of a variance before she evaluates performance? 5. Other than performance evaluation, what reasons are there for calculating variances? 6. What future problems could result from Best Bikes' decision to buy a lower quality of titanium from the online marketplace