Please complete sections 2A - 3B. Thank you

Chapter 13 Case Project 2 QualSupport Corporation manufactures seats for automobiles, vans, trucks, and various recreational vehicles, The company ha number of plants around the world, including the Denver Cover Plant which makes seat covers. Ted Vosilo is the plant manager of the Denver Cover Plant but also serves as the regional production manager for the company. His udgot as the regional manager is charged to the Denver Cover Plant. Vosilo has just heard that QuatSupport has received a bid from an outside vendor to supply the equivalent of the entire annual output of the Denver Cover Plant for $20 er Plant for $20.69 million Vusilo was astonished at the low outside bid because the budget for the De Plant's operating costs for the upcoming year was set at $23.99 million, If this bid is accepted, the Denver Cover Plant will be closed down The budget for Denver Cover's operating costs for the coming year 85,960,900 Supervision direct plant #.478,808 Plant manager and stall Carpurses aupeasant Total budgeted costs Fixed corporate expan heated to plants and other operating units ba ed on total budgeted wage and salary costs Additional facts regarding the plant's of Due to Denver Cover's co amitment to use high quality fabrics in all of its products. an instructed place blanket purchase or ers to ensure the receipt of year. If these ordan are canceled as a consequ would amour kimately 180 plant employee will lose their jobs if the plant dos all of the direct labo bot direct material is. Some would be able to find new obs while many others would have difficulty. All employees s y matching Denver Cover's base pay of $1LBO p ous, which is the highest in the area. A clause in Denver Cover's contract with the union may hel oyees; the company 13 mons after a plant closing. The estimated cost to administer must provide employment assistance to its former employees for 12 months after a plant cle this service would be $073 million for the year. Some employees would probably choose early retirement because QualSupport has an excellent pension plan. In fact, $0.63 million of the annual pension expense would continue whether Denver Cover is open or not. d. Vosilo and his staff would not be affected by the closing of Denver Cover. They would still be responsible for administering three other area plants, If the Denver Cover Plant were closed, the company would realize about $2.25 million salvage value for the equipment and building. if the plant remains open, there are no plans to make any significant investments in new equipment or buildings. The old equipment is adequate and should last Indefinitely quired: Qual Support Corporation plans to prepare a financial analysis that will be used in deciding or not to close the Denver Cover to identity 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. Ary nonrecurring costs that would arise ng of the plant 1. Looking at the data you have Calculate the financial advant lancial advantage (disadvantage) of closing the plant a, Should the plant be closed? Complete this question by entering your ers in the tabs below. pport Corporation plans to prepare a financial analysis that will be used in deciding whether or not to close the Deny g the plant. (enter your answers in dollars not in mutions.)