Qn 15 and 16

QUESTION FIFTEEN - Marginal analysis - Make or Buy Contract Decisions TUPO Led is a company located at Manzese area; the company is specialized in fabrication of sport bicycles, The estimated costs of producing, 6,000 sport bicycles ure: Per Unit- TZS Total - 124 Direct Material 10,000 60.000.010 Direct Labor 8.000 46.000.000 Applied Variable Overhead Applied Fixed Factory Overhead 72, 040,COO TOTAL. 39,000 The bicycles can be purchased from market at a price of [25 29.000 per unit. If the bicycles are purchased from the external market, 25be of the fixed factory overhead will be saved. Required a) line accounting number in advise the management of TUPD Lid as to whether the bicycles should be latemally produced the bicycles or buy them from external market hi Dischave any other eight (") qualitative characteristics would you consider in your advice ly the Menagement of TUPQ (Consider hoth favouring your advice and most favouring your quenatively supported decision QUESTION SIXTEEN - Maryimil english - DECISION TO CLOSE OR CONTINUE Sports Sohillon Lid is a retail shop located at Karikon that operates through three departments, all in the sunme premises. The three departments occupy roughly equal-sized areas of the promises whose rental costs is TZS 120,060,010 per years. This cost is equally portioned across the department. The trading results fix the year ended 30* September 2018 showed the Following Details Sports Sport Spurt Clothes Total Sports Sales Revenue 200.0 00,000 170.004,000 90,090.000 481010,090 Variable Costs 107.004 040 87,000,000 60 000,000 254,090 000 Contribution Margin 93,090,090 83,000,090 30.000,000 206 0CO,000 Fixed costs 40,004 009 40,000,000 40.000.000 120,000,0DO ProfitLol -10,609,906 86,000 090 The general manager of the company - Mrs. Moto Mkali is on opinion that the Sport, Clothes department reduced the profit of the business from TZS 96,000;090 to TZS 86,000,000 as such she is planning to close the department during the accounting period that started 1" October 2018, However the approached you in analysis and provide her on the best decision about the sports ctolley department. Page gol 13 Required: Provide an objective analysis ( Use Competed Figure ) to adures a to whatter the decision thought by Mrs meto Muall i viable