Refer to Exercise 14- 21. Required 1. Calculate the amount and cost of unused software- implementation support
Question:
Refer to Exercise 14- 21.
Required
1. Calculate the amount and cost of unused software- implementation support capacity at the beginning of 2012, based on the number of jobs actually done in 2012.
2. Suppose Northland can add or reduce its software- implementation support capacity in increments of 10 units. What is the maximum amount of costs that Northland could save in 2012 by downsizing software-implementation support capacity?
3. Northland, in fact, does not eliminate any of its unused software- implementation support capacity. Why might Northland notdownsize?
Transcribed Image Text:
2011 2012 1. Number of jobs billed 2. Selling price per job 3. Software-implementation labor-hours 4. Cost per software-implementation labor-hour 5. Software-implementation support capacity (number of jobs it can do) 6. Total cost of software-implementation support 7. Software-implementation support-capacity cost per job (row 6 row 5) 40 $45,000$42,000 25,000 28,000 $60 70 $224,000$252,000 $3,200 $3,600 $58 70
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