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YouTube i ma'luum | Dashbo... Award Plus Co. manufactures medals for winners of athletic events and other contests. The company is considering whether to continue manufacturing the medals or to buy them from an outside source. The following information is available: The company needs 20,000 medals per year. The cost of manufacturing the medals is detailed as follows: Direct materials RM400,000 Direct labor RM500,000 Variable manufacturing overhead RM350,000 Fixed manufacturing overhead RM450,000 Total manufacturing costs RM1,700,000 Discontinuing the manufacture of medals will eliminate all the raw materials and direct labor cost but will eliminate only 80% of the variable manufacturing overhead costs. The remaining amount of variable manufacturing costs will continue to be incurred. The medals can be purchased from an outside supplier at a cost of RM60 per unit. If the medals are purchased from an outside supplier, machinery used in the production of medals will be sold at its book value. Accordingly, no gain or loss will be recognized. The sale of this machinery would also eliminate RM5,000 in fixed manufacturing costs associated with depreciation. No other reductions in fixed manufacturing will occur from discontinuing the production of medals. The production manager of Award Plus Co. corporation raised his concern regarding the outsourcing of medals to outside supplier. He commented: "I am really concerned about outsourcing the medals. I have son-in-law and a nephew who work in our medals' factory. They could lose their jobs if we buy the medals from the outside supplier. I really would appreciate anything you could do to make sure the cost analysis comes out night to show we should continue making the medals". (6 marks) c. Discuss three qualitative factors that Award Plus Co. Corporation should consider before agreeing to purchase the medals from outside supplier (6 marks) d. Is the production manager acting ethically? Explain your answer by referring to three standards of ethical conduct for managerial accountant. (6 marks) TOTAL DIS Award Plus Co. manufactures medals for winners of athletic events and other contests. The company is considering whether to continue manufacturing the medals or to buy them from an outside source. The following information is available: . The company needs 20,000 medals per year. The cost of manufacturing the medals is detailed as follows: Direct materials RM400,000 Direct labor RM500,000 Variable manufacturing overhead RM350,000 Fixed manufacturing overhead RM450,000 Total manufacturing costs RM1,700,000 Discontinuing the manufacture of medals will eliminate all the raw materials and direct labor cost but will eliminate only 80% of the variable manufacturing overhead costs. The remaining amount of variable manufacturing costs will continue to be incurred. The medals can be purchased from an outside supplier at a cost of RM60 per unit. If the medals are purchased from an outside supplier, machinery used in the production of medals will be sold at its book value. Accordingly, no gain or loss will be recognized. The sale of this machinery would also eliminate RM5,000 .in fixed manufacturing costs associated with depreciation. No other reductions in fixed manufacturing will occur from discontinuing the production of medals. . The production manager of Award Plus Co. corporation raised his concern regarding the outsourcing of medals to outside supplier. He commented: "I am really concerned about outsourcing the medals. I have son-in-law and a nephew who work in our medals' factory. They could lose their jobs if we buy the medals from the outside supplier. I really would appreciate anything you could do to make sure the cost analysis comes out right to show we should continue making the medals