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Club Car is an Amencan company that manufactures electric and gas-powered gol cars and UTVs for personal and commercial use. The olf carts have unique cupholders, also currently produced by Club Car. Every year the company manufactures 7.000 cupholders. The company's Accounting Department reports the following costs of producing the cupholders at this level of activity: Dagitinit An outside supplier has offered to produce and sell the cupholders to Club Car for $1710 each. If this offer is accepted, the supervisor's salary and oll of the variable costs, including direct labor, can be avolded. The special equipment used to make the cupholders was purchased many years ago and has no salvage value or other use. The allocated general overhead tepresents fixed costs of the entire company, none of which would be avolded if the cuphoiders were purchased instead of produced internally. If management decides to buy the cupholders from the outside supplier rather than to continue making the part, what would be the arrudal financial advantage (disadvantage)? Gallery Leather located in Maine produces journals and photo albums. Each photo album requires 3.5 kilograms of the raw material Leather. Budgeted production of photo albums for the next five months is as follows: The company wants to maintain monthly ending inventories of Leather equal to 20% of the following month's production needs. On July 31 , 11,800 kilograms of Leather were on hand. The cost of Leather is $28 per kilogram. The company wants to prepare a Direct Materials Purchase Budget for the next flve months. The total cost of Leather to be purchased in August is: Mulvple Choice $2,419,480 Gallery Leather located in Maine produces photo albums. Gallery Leather has budgeted sales in units for the next five months as follows: Past experience has shown that the ending inventory for each month must be equal to 20% of the next month's sales in units. The inventory on Moy 31 contained 914 photo albums. The company needs to prepare a production budget for the second quarter of the year, The total number of photo albums to be produced in July is: Multiple Choice. 7,450 units 7784 units Headquartered in Eostern Pennsylvania, Petroleum Service Company (PSC) was founded in 1924 and incorporated in 1930. PSC is an oilfield services. company. PSCS accountant is reviewing the budget and notes the following fixed and variabie cost estimates that it uses for budgeting purposes. A total of 42 wells were actually serviced during October. The revenue in the compony's flexible budget for October would have been closest to: Multiple Choice $168,000 $150,114