Requirement 3. Was switching suppliers a good idea for Sporty Bikes? Explain why or why not.Switching supplierswas nota good idea.could be due to several factors includingThe decreasein the cost of titanuim was outweighed by the increase in material usage. In addition, thevariancerecognize the total impact of the lower quality titanium because onlypounds were used. Sporty Bikes could expect the remainingpounds to result in an additionalvarianceRequirement 4. Should Michael Sweeney's performance evaluation be based solely on price variances? Should the production manager's evaluation be based solely on efficiency variances? Why is it important for Katharine Rouse to understand the causes of a variance before she evaluates performance?The purchasing manager's performance evaluation evaluationbe based solely on the price variance. The short-run be based solely on the efficiency variances. In this case, the production managerin purchase costs was more than offset byresponsible for the purchase of the lower-quality titanium, which led to theusage rates. In addition, the production manager's performance efficiency scores.Select the two statements that answer why it is important for Katharine Rouse to understand the causes of a variance before she evaluates performance.It is important for Rouse to understand that not all favorable material price variances are "good news", because of the negative effects that can arise in the production process from the purchase of inferior inputs.Rouse should understand efficiency variances may arise for only one reason and she needs to know that reason before evaluating performance.It is important for Rouse to understand that all favorable material price variances are "good news", because they are increasing profits.Rouse should understand efficiency variances may arise for many different reasons and she needs to know these reasons before evaluating performance.