Ronaldo Company produces a game station that requires a component K-1. Currently, Ronaldo manufactures K1 in their ewn factory and it requires and manufactures 10,000 units. The current production costs per unit of K1 is as follows: An outside supplier from China has offered to provide an identical component at a price of $10 per unit. If Ronaldo Company stops producing the component internally, $5,000 of the fixed manufacturing overhead would be eliminated. Required: (a) Should Ronaldo Coenpany purchase K1 from the outside supplier? Provide computations to justify your answer. (5 marks) (b) List TWO (2) non-quantitative factors the Company should consider if it should purchase K-1 from the outside supplier. (4 marks) Clara Company manufactures perfumes. The unit for costing perposes is per bottle. The following standards for producing one bottle have been established: During January, 75,000kg of material were purchased and used in prodoction. There were 13.000 actual botiles produced, with the following actual prime costs: Required: (a) Calculate the direct materials price variance and materials usage variance for January, indicating a favourable or unfavourable variance. (6 marks) (b) Give TWO (2) possible reasons for the material variances calculated in (a). (2 marks) (c) Calculate the labour rate variance and labour efficiency variance for January. indicating a favourable or unfavourable variance. (6 marks) (d) Give TWO (2) possible reasons for the labour sariances calculated in (c). (2 marks)