Question

Refer to Exercise 14- 18.


Required
1. Calculate the amount and cost of
(a) Unused manufacturing capacity and
(b) Unused selling and customer-service capacity at the beginning of 2012 based on actual production and actual number of customers served in 2012.
2. Suppose Melissa can add or reduce its manufacturing capacity in increments of 10 units. What is the maximum amount of costs that Melissa could save in 2012 by downsizing manufacturing capacity?
3. Melissa, in fact, does not eliminate any of its unused manufacturing capacity. Why might Melissa notdownsize?


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  • CreatedJanuary 15, 2015
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