Noguchi Company manufactures cooling systems. Noguchi produces all the parts necessary for its product except for one electronic component, which is purchased from two local supplers: Manzer inc and Buckner Company. Both supplers are feliable and seldom deliver late; however, Manzer sells the component for sa9 per unit, while Buckner. sells the same component for $86. Noquch purchases 80% of its components from Buckner because of its lower pnce. The total annual demand is 4,000,000 companents: To help assess the cost effect of the two components, the following data were collected for supplier-related activities and suppliers: 1. Activity Data 1. Calculate the cost per component for each supplier, taking into consideration the costs of the supplier-related activibes and using the current prices and sales volume (Noter Round the intermediate calculations to the whole number for the following activity ratest "Reworking products" and "Warranty work". Round the unit cost to two decimal places,) 2a. Suppose that Noguchi loses $5,568,000 in sales per vear because it develops a poor reputation due to defective units attnbutable to failed components. Using warranty hours, assign the cost of lost sales to each supplet. Manzer Buckoner 1 8 2b. Ey how much would this change the cost of each suppliers component? Round your answers to the nearest cent. Manzer Duckner 1. Based on the analysis in Requements 1 und 7 , dicauss the umportance of activity tosed susplier costing for internal decasion inaking As with product costing, accurate assignment of costs to the cose object is essentul for well-grounded decision-making Suppliris can cause a firm to perform contly activiters such as inspection, rework, and warranty work. The of a companent is thus more than its purchase pnce. As this example shows, the comwonent with the pence is actually less expensive because it causes less demand oc internal costly activities. Thus, the compary would likely the purchases of one suppler in fovor of the other. It also nught attempt to work with the one supplier which is causing sugnificant demands on internal activities to sne 4 the Quality of as component can be increaseit