Question: could make sure to write the answers im a form that I will understand Arellano Associates is a construction engineering firm that Engineering labor-hour costs


Arellano Associates is a construction engineering firm that Engineering labor-hour costs are variable costs. prepares detailed construction drawings for single-family Engineering support costs for each year depend on homes. The market for this service is very competitive. To the engineering support capacity that Arellano compete successfully Arellano must deliver quality service chooses to maintain each year (that is, the number at low cost. Arellano presents the following data for 2019 of jobs it can do each year). Engineering support and 2020. costs do not vary with the actual number of jobs (Click the icon to view the data.) done in a year. The amount of unused capacity is jobs and the cost of unused capacity is Requirement 2. Suppose Arellano can add or reduce its engineering support capacity in increments of 50 jobs. What is the maximum amount of costs that Arellano could save in 2020 by downsizing engineering support capacity? Arellano can reduce engineering support capacity by for a cost savings of This is the amount of costs Arellano can save by downsizing in 2020. It reduce capacity further (by another capacity to do the jobs in 2020 Data table Requirements 1. Calculate the amount and cost of unused engineering support capacity at the beginning of 2020, based on the number of jobs actually done in 2020 . 2. Suppose Arellano can add or reduce its engineering support capacity in increments of 50 jobs. What is the maximum amount of costs that Arellano could save in 2020 by downsizing engineering support capacity? 3. Arellano, in fact, does not eliminate any of its unused engineering support capacity. Why might Arellano not downsize
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