Qualsippon Corporation manufoctures seots for automobies, vans, trucks, and vatiove recreational vehicles. The company has a number of plants around the world, including the Denver Cover Plant which inakes seat covers. Ted Vos lo is the plant manager of the Denwer Cover Plont but abo secves as the regional production manager for the company. His. budget as the regional manager is charged to the Derver Cover Plant. Vosilo has just heard that Quasupport has received a bid from on outside vendor to supply the equivalent of the entre annual output of the Denver Cover Plant for 52025 mifion. Vosilo was astonshed at the low outside bid because the budget for the Denver Cover. Plarts operhting costs for the upcocing year was set at $23.55 milion if this bid is accepted, the Denver Cover Plant wa be closed down The budget for Denver Covers cperating costs for the coming year is presented below: Fixed corparate expenses abocated to plants and other eperating units based on total budoeted wage and salary costs Addibonal facts regarding the planti operations are as follows a. Due to Denver Cover's commitment to use high-quality fabrics in all of its products, the Purchasing Department was instructed to place blanket purchase orders with major suppliers to ensure the receipt of sufficient materials for the coming year. If these orders. are canceled as a consequence of the plant closing, termination charges would amount to 25% of the cost of direct materials. b. Approximatey 320 plant employees will lose their jobs if the plant is closed. This includes all of the direct laborers and supervisors as well as the plumbers, electricians, and other skilled workers classified as indirect plant workers. Some would be able to find new. jobs while many others would have difficulty. All employees would have difficulty matching Deriver Cover's base pay of $11.90 per hour, which is the highest in the area. A clause in Denver Cover's contract with the union may help some employees; the company must provide employment assistance to its former employees for 12 months after a plant closing. The estimated cost to administer this service would be $075 million for the year. c. Some employees would probably choose early retirement because Quaisupport has an excellent pension plan. in fact, 50.74 milion of the annual pension expense would continue whether Denver Cover is open or not d. Vosilo and his stalf would not be affected by the closing of Demver Cover. They mould still be responsible for administering three other area plants. e. If the Derver Cover Plant were closed, the company would realize about $185 milion salvage value for the equipment and building If the plant remains open, there are no plans to make any significant investments in rew equipment or buildings. The old equipment is adequate and should last indefinitely Required: 2. QualSupport Corporation pians to prepare a financial analysis that will be used in deciding whether or not to close the Denver Cover Plant. Management has asked you to identify. a. The annual budgeted costs that are relevant to the decision regarding closing the plant. b. The annual budgeted costs that are not relevant to the decision regarding closing the plant. c. Any nonrecurring costs that would arise due to the closing of the plant. 3. Looking at the data you have prepared in (2) above. a. Calculate the financial advantage (disadvantage) of closing the plant. b. Should the piant be closed? Complete this question by entering your answers in the tabs below. Quatsupport Corporation plans to prepare a financial analysis that will be used in deciding whether or not to close the Denver Caver Plant. Mansgement has asked you to identify the annual budgeted costs that are relevant to the decisian regarding closing the plant. (Enter your anbwers in dollars not in enilions) . Complete this question by entering your answers in the tabs below. QualSupport Corporation plans to prepare a financial analysis that will be used in deciding whether or not to dose the Denver Cover Plant. Management has asked you to identify the annual budgeted costs that are nobrelevant to the decision regarding dosing the plant. (Enter your answers in dollars not in millions.). Complete this question by entering your answers in the tabs below. QualSupport Corporation plans to prepare a financial analysis that will be used in deciding whether or not to close the Denver Cover Plant. Management has asked you to identify any nonrecurring costs that would arise due to the closing of the plant. (Enter your answers in dollars not in millions.) Complete this question by entering your an'swers in the tabs below. Looking at the data you have prepared in (2), calculate the financlal advantage (disadvantage) of closing the plant. (Enter your answers in dollars not in milions. Any reductions or outhow should be indicated by a minus sign.) Complete this question by entering your answers in the tabs below. tooking at the data you have prepared in (2), should the plant be clesed