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QUESTION 1 5 points A1-Nour Company has been manufacturing its own part Z100 that is used in producing its final product. The cost of manufacturing

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QUESTION 1 5 points A1-Nour Company has been manufacturing its own part Z100 that is used in producing its final product. The cost of manufacturing 9,500 parts of Z100 is summarized below. A supplier offers to produce part Z100 that A:-Nour needs for $5.30. If the offer is aceepted, the supptier will charge shipping costs of $0.42 per unit, If the company decides to buy from the supplier, 60% of the fixed factery overthead which represents factory equipenent depreciation and supervisor's salary will continue to be paid by At-Nour Company. Required: (Show all your calculations) (Answers should be to too decimal places) a. What is the financial advantage (disadvantage) of accepting the outside supptier's offer? (2 Marks) A supplier offers to produce part Z100 that Al-Nour needs for $5.30. If the offer is accepted, the supplier will charge shipping costs of S0.42 per unit. If the company decides to buy from the supplier, 60% of the fixed factory overhead which represents factory equipment depreciation and supervisor's salary will continue to be paid by Al-Nour Company. Required: (Show all your calculations) (Answers should be to two decimal places) a. What is the financial advantage (disadvantage) of accepting the outside supplier's offer? (2 Marks) b. Would Al-Nour company be financially better off to buy part Z100 from an outside supplier or continue making it? And why? (0.5 Mark) C. Suppose that if the company chooses to buy part Z100, the space that would have been used to manufacture part Z100 ean be rented out to a tenant for $10,500. In addition, assume that the supplier's offer to produce part Z100 is $5,50 per unit, and the shipping costs are 50.50 per unit. In this case, what is the financial advantage (disadvantage) of aceepting the outside supplier's offer? (2 Marks) d. Based on requirement (c), would AI-Nour company be financially better off to buy part ZI00 from an outside supplier or continue making if? And why? (0.5 Mark)

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