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 suppliers: Manzer Inc. and Buckner Company. Both suppliers are reliable and seldom deliver late; however, Manzer sells the component for $$89$ per unit, while Buckner sells the same component for $$86.$ Noguchi purchases $80\%$ of its components from Buckner because of its lower price. The total annual demand is $4,000,000$ components.

To help assess the cost effect of the two components, the following data were collected for supplier$-$related activities and suppliers:

I. Activity Data

Line Item Description Activity Cost

Inspecting components $($sampling only$)$ $$760,000$

Reworking products $($due to failed component$)8,370,000$

Warranty work $($due to failed component$)12,370,000$

II$.$ Supplier Data

Line Item Description Manzer Inc. Buckner Company

Unit purchase price $$89$ $$86$

Units purchased $800,0003,200,000$

Sampling hours$*803,920$

Rework hours $3605,640$

Warranty hours $80015,200$

$*$ Sampling inspection for Manzer's product has been reduced because the reject rate is so low.

Required:

$1.$ Calculate the cost per component for each supplier, taking into consideration the costs of the supplier$-$related activities and using the current prices and sales volume. $($Note: Round the intermediate calculations to the whole number for the following activity rates: "Reworking products" and "Warranty work". Round the unit cost to two decimal places.$)$

Line Item Description Cost

Manzer Inc. $fill in the blank $1$

per unit

Buckner Company $fill in the blank $2$

per unit

$2$a$.$ Suppose that Noguchi loses $$3,936,000$ in sales per year because it develops a poor reputation due to defective units attributable to failed components. Using warranty hours, assign the cost of lost sales to each supplier.

Line Item Description Cost

Manzer $fill in the blank $3$

Buckner $fill in the blank $4$