Quicksnop Photo Compony Quicksnap Photo Company manufactures high end cameras with operations in multiple cities across North America. One of the largest manufacturing facilities in Vancower, antish Columbia specializes in the production of waterproof cameras. The manager of the Vancouver operations recently found out that Quickinap received an offer from another compamy to provide the entire volume of cameras that the Vanceuver plant typically produces for a total of $29 million per vear. The manager was sarprised at how low this offer was, coesidering the budget for the Vancouver plant to produce these cameras was 534.8 milion for the coming. year. If Quicksap accepts this offer to buy the waterproof cameras from an external company. they will no longer require the Vancouver production facility and it wilf be shut down. The annual budget for the Vancowver facility's operating costs for the coming vear: Addational facts regarding the faciliyss cperutions are as follow: a. Due to the plact's commitment to use high-gualify fabriss in all its products, the Purchasing Department was instructed to plice blanket purchine orders with major suppliers to ensure the teceipt of sufficient materials for the comine year, If these orders are cancelled because of the plant closing teimication charges would amount to 308 of the cost of direct materials: b. Appronimately 300 employees will lose their jobs if the plant is closed. This includes all the direct labourers and supervisors, management and staff, and the plumbers, electricians, and other sklied workers clasufied as indrect plant workers Same of theve workers would have ditficulty fading new joos. Nearly al the production workers wodld have daficulty matching the plant's bare pay of $13.00 per hour, which is the Nighest in the area. A clause in the plart's contract with the unicn may help some employees, the company must provide emplopment. asuistance and job training to its former employees for 12 months after a plant olosing. The estimated cost to administer this service would be 51.2 million. c. Some employees would probably choope early retirement because the company has an excelient pension pian. in fact, $1.1 milion of the annual pensian eapenditures would continue whether the plant is open or not. d. The manager and his regonal staff would not be affected by the closing of the Vancouver plant. They would still be reseansible for running three other plants. e. If the plant were closed, the company would realire about $3 million sakage value for the equipment in the plant. If the plant remains open there are no plans to make any sigrificant investments in new equipment or bulgingt The cld equipment is adequate for the job and. should last indefinitely. Required: 1. Without regard to the costs, identify the advantages of the compacy continuing to produce cameras from is own Vancouver plant. 2. Without regard to costs, identify the disadvantager of the company continuing to aroduce camefas from its own Yancounes plant. plant. They would still be responsible for running three other plants. e. If the plant were closed, the company would realize about $3 million salvage value for the equipment in the plant. If the plant remains open, there are no plans to make any significant investments in new equipment or buildings. The old equipment is adequate for the job and should last indefinitely. Required: 1. Without regard to the costs, identify the advantages of the company continuing to produce cameras from its own Vancouver plant. 2. Without regard to costs, identify the disadvantages of the company continuing to produce cameras from its own Vancouver plant. 3. The company plans to prepare a financial analysis that will be used in deciding whether to close the Vancouver location. Management has asked you to identify in a special schedule: a) The annual budgeted costs that are relevant to the decision regarding closing the plant (show the dollar amounts). b) The annual budgeted costs that are not relevant to the decision regarding closing the plant and explain why they are not relevant (show the dollar amounts). Quicksnop Photo Compony Quicksnap Photo Company manufactures high end cameras with operations in multiple cities across North America. One of the largest manufacturing facilities in Vancower, antish Columbia specializes in the production of waterproof cameras. The manager of the Vancouver operations recently found out that Quickinap received an offer from another compamy to provide the entire volume of cameras that the Vanceuver plant typically produces for a total of $29 million per vear. The manager was sarprised at how low this offer was, coesidering the budget for the Vancouver plant to produce these cameras was 534.8 milion for the coming. year. If Quicksap accepts this offer to buy the waterproof cameras from an external company. they will no longer require the Vancouver production facility and it wilf be shut down. The annual budget for the Vancowver facility's operating costs for the coming vear: Addational facts regarding the faciliyss cperutions are as follow: a. Due to the plact's commitment to use high-gualify fabriss in all its products, the Purchasing Department was instructed to plice blanket purchine orders with major suppliers to ensure the teceipt of sufficient materials for the comine year, If these orders are cancelled because of the plant closing teimication charges would amount to 308 of the cost of direct materials: b. Appronimately 300 employees will lose their jobs if the plant is closed. This includes all the direct labourers and supervisors, management and staff, and the plumbers, electricians, and other sklied workers clasufied as indrect plant workers Same of theve workers would have ditficulty fading new joos. Nearly al the production workers wodld have daficulty matching the plant's bare pay of $13.00 per hour, which is the Nighest in the area. A clause in the plart's contract with the unicn may help some employees, the company must provide emplopment. asuistance and job training to its former employees for 12 months after a plant olosing. The estimated cost to administer this service would be 51.2 million. c. Some employees would probably choope early retirement because the company has an excelient pension pian. in fact, $1.1 milion of the annual pensian eapenditures would continue whether the plant is open or not. d. The manager and his regonal staff would not be affected by the closing of the Vancouver plant. They would still be reseansible for running three other plants. e. If the plant were closed, the company would realire about $3 million sakage value for the equipment in the plant. If the plant remains open there are no plans to make any sigrificant investments in new equipment or bulgingt The cld equipment is adequate for the job and. should last indefinitely. Required: 1. Without regard to the costs, identify the advantages of the compacy continuing to produce cameras from is own Vancouver plant. 2. Without regard to costs, identify the disadvantager of the company continuing to aroduce camefas from its own Yancounes plant. plant. They would still be responsible for running three other plants. e. If the plant were closed, the company would realize about $3 million salvage value for the equipment in the plant. If the plant remains open, there are no plans to make any significant investments in new equipment or buildings. The old equipment is adequate for the job and should last indefinitely. Required: 1. Without regard to the costs, identify the advantages of the company continuing to produce cameras from its own Vancouver plant. 2. Without regard to costs, identify the disadvantages of the company continuing to produce cameras from its own Vancouver plant. 3. The company plans to prepare a financial analysis that will be used in deciding whether to close the Vancouver location. Management has asked you to identify in a special schedule: a) The annual budgeted costs that are relevant to the decision regarding closing the plant (show the dollar amounts). b) The annual budgeted costs that are not relevant to the decision regarding closing the plant and explain why they are not relevant (show the dollar amounts)