Identifying and managing unused capacity (continuation of 13-22). Refer to Exercise 13-22.

1. Where possible, calculate the amount and cost of (a) unused manufacturing capacity, (b) unused selling and customer-service capacity, and (c) unused design capacity at the beginning of 2009, based on 2009 production. If you are unable to calculate the amount and cost of unused capacity, indicate why not.

2. Suppose Meredith can add or reduce its manufacturing capacity in increments of 30 units. What is the maximum amount of costs that Meredith could save in 2009 by downsizing manufacturing capacity?

3. Meredith, in fact, does not eliminate any of its unused manufacturing capacity. Why might Meredith not downsize?