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E12-28 (similar to) Question Help Manchester Corporation makes a special-purpose machine, D4H, used in the textile industry. Manchester has designed the D4H machine for 2017 to be distinct from its competitors. It has been generally regarded as a superior machine. Manchester presents the following data for 2016 and 2017. (Click the icon to view the data.) (Click the icon to view additional information.) Read the requirements. Requirement 1. Calculate the amount and cost of (a) unused manufacturing capacity and (b) unused selling and customer-service capacity at the beginning of 2017 based on actual production and actual number of customers served in 2017 Amount of unused capacity Cost of unused capacity (a) (b) Manufacturing Selling and customer service 4 of 6 (3 complete) HW Score: 34.78%, 6.26 of 18 p 0 of 3 pts 28 (simil * More Info i More Info igned ester Corpora ester present lick the icon to he requireme 1. Units of D4H produced and sold Manchester produces no defective machines, but it wants to reduce direct materials usage per D4H machine in 2017. Conversion costs in each year depend on production capacity defined in terms of D4H units that can be produced, not the actual units produced. Selling and customer service costs depend on the number of customers that Manchester can support, not the actual number of customers it serves. Manchester has 80 customers in 2016 and 85 customers in 2017. Fement 1. Cal custom Print Done 2. Selling price 3. Direct materials (kilograms) 4. Direct material cost per kilogram 5. Manufacturing capacity in units of D4H 6. Total conversion costs 7. Conversion cost per unit of capacity (row 6/row 5) 8. Selling and customer-service capacity 9. Total selling and customer-service costs 10. Selling and customer service capacity per customer (row 9 / row 8) 2016 2017 240 265 37,000 $ 38,000 285,000 292,500 8.75 $ 9.25 290 290 $ 2,407,000 $ 2,436,000 $ 8,300 $ 8,400 125 customers 120 customers $ 1,250,000 $ 1,188,000 $ 10,000 $ 9,900 i Requirements 1. Calculate the amount and cost of (a) unused manufacturing capacity and (b) unused selling and customer-service capacity at the beginning of 2017 based on actual production and actual number of customers served in 2017 2. Suppose Manchester can add or reduce its manufacturing capacity in increments of 40 units. What is the maximum amount of costs that Manchester could save in 2017 by downsizing manufacturing capacity? 3. Manchester, in fact, does not eliminate any of its unused manufacturing capacity. Why might Manchester not downsize? Print Done Print [Done

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