I posted the question separate as a new question.

10. makes following cost data: Number of sprockets used each year 100,000 Direct Material Cost 30,000 Direct Labor Cost 44,000 Variable Manufacturing Overhead 12,000 Fixed Manufacturing Overhead 32,000 TOTAL COSTS $ 118,000 *70% could be avoided if production of the sprockets ceases. An outside vendor has offered to sell Perfection, Inc. the sprockets at a price of $1.25 each. 1. Should Perfection, Inc. continue to make the sprockets or purchase them from the outside vendor? What is the incremental cost? 2. What other considerations should be considered by Perfection, Inc. when makin this decision? (List at least three considerations.) Members of the board of directors of Safety Step have received the following operating Income data for the year ended August 31, 2020: Industrial Household Systems Total Systems Sales Revenue 350.000 330.000 680000 Variable Costa Variable Cost of Goods Sold 39.000 44.000 5 83.000 Variable Selling and Administrative 76.0001 14100 Total Variable costs 10:00 TDOO 222.000 Contribution Margin 245000211003 Direct Fixed Cost Segment Margin (000) 145,000 $ 130,000 Common Fixed Costs 30 000 270000 36.000 Operating income (LOSE 64,000 Members of the board are surprised that the industrial systems product line is losing money. They commission a study to determine whether the company should drop the line. Company accountants determine that while direct fixed costs could be saved if the line were eliminated, common fixed costs could not As a result of their analysis, they decide to drop the line, reasoning that although they will not save $54,000, but they will save money. REQUIRED: a) Prepare an incremental analysis to support the decision. Be sure to indicate how much the company will save. ) What factors, other than the quantitative analysis (the numbers), would you have considered in making your decision? (List at least two factors.) Members of the board of directors of Safety Step have received the following operating income data for the year ended August 31, 2020 Industrial Household Total systems Systems Sales Revenue 350.000 330.000 Variable Costs Variable Cost of Goods Sold 39.000 44.000 83,000 Variable Selling and Administrative 36.000 7000 14000 Total Variable Costs 1015000 100000 224,000 Contribution Margin 24.000 $ 6001 Direct Fixed Costs 260XOLO 66000 Segment Margin ES (15,000 145,000 $ 1330,000 Common Fixed Costs 39,000 27 000 85.000 Operating Income (Loss) 154.000 18.000 64.000 Members of the board are surprised that the industrial systems product line is losing money. They commission a study to determine whether the company should drop the line. Company accountants determine that while direct fixed costs could be saved if the line were eliminated, common fixed costs could not As a result of their analysis, they decide to drop the line, reasoning that although they will not save $54,000, but they will save money. REQUIRED: a) Prepare an incremental analysis to support the decision. Be sure to indicate how much the company will save. you have b) What factors, other than the quantitative analysis (the numbers), would considered in making your decision? (List at least two factors.)