a. Due to the plant's commitment to use high-quality fabrics in all its products, the Purc Department was instructed to place blanket purchase orders with major suppliers to en receipt of sufficient materials for the coming year. If these orders are cancelled because plant closing, termination charges would amount to 30% of the cost of direct materials. b. Approximately 300 employees will lose their jobs if the plant is closed. This includes a direct labourers and supervisors, management and staff, and the plumbers, electricians, other skilled workers classified as indirect plant workers. Some of these workers would difficulty finding new jobs. Nearly all the production workers would have difficulty match plant's base pay of $13.00 per hour, which is the highest in the area. A clause in the plan contract with the union may help some employees; the company must provide employm assistance and job training to its former employees for 12 months after a plant closing. Th estimated cost to administer this service would be $1.1 million. c. Some employees would probably choose early retirement because the company has an excellent pension plan. In fact, $1.1 million of the annual pension expenditures would con whether the plant is open or not. d. The manager and his regional staff would not be affected by the closing of the Vancouve 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 th equipment in the plant. If the plant remains open, there are no plans to make any significan 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