Could you please help me with the Chandler Case Study question and please show work.

1 4) 2 Assume that Chandler considers the production of the pool shades and trellises to be a short-term decision. Because there is currently excess capacity in their processes, the company wants to evaluate the new products using a cash outlay approach. Compute the impact on Chandlers profits for each option. 3 4 5 4a) Compute the net change in cash of making and selling the full demand of pool shades. 6 4b) Compute the net change in cash of making and selling the full demand of trellises. 7 4c) Compute the net change in cash of making and selling the full demand of both pool shades and trellises. 8 9 0 Resource Spending Approach a. Full demand b. Full demand c. Full demand 1 Pool Shades Trellises Both 2 Product Line Only Only Products 3 Unit sales price Incremental revenue 4 5 Material 6 7 Design/Drafting Engineering Fabrication 8 9 0 Powder coating Scheduling General factory 1 2 Total cost 3 Incremental Profit 4 Exhibit 1. Existing Capacity Available and Used and Capacity Costs (Annual) Resource Practical Capacity Cost Driver Purchased Cost of Capacity Used Capacity Design/Drafting 20,000 Design hours $500,000 19,500 Engineering 15,000 Engineering hours $750,000 14,750 Fabrication 40,000 Number of parts $30,000 39,000 Powder coating 400.000 Square feet $1,800,000 210,000 Scheduling/setup 750 Job setups $756,000 640 General factory 80,000 Machine hours $2,400,000 64,000 Exhibit 2. Resource Needs for Potential New Products Resource (Cost Level) Cost Driver Pool Shade Requirements Trellis Requirements Design/Drafting (product) Design hours 30 20 Engineering (product) Engineering hours 4 2 Fabrication (unit) Number of parts 40 22 Powder coating (unit) Square feet 1.600 170 Scheduling/setup (unit) Job setups 1 1 General factory (unit) Machine hours 80 10 Pool Shade Trellis Desired Profit on Sales 0.30 Selling price/unit $42,500 $4,300 Demand Pool shades 120 Material cost/unit $18,750 $700 Demand Trellises 60 Exhibit 3. Purchase Price of Additional Capacity Cost of Capacity of next step Resource Cost Driver Next Step Design/Drafting 2,000 Design hours $50,000 Engineering 2,000 Engineering hours $110,000 Fabrication 3,000 Parts $3,150 Powder coating 20,000 Square feet $100,000 Scheduling/setup 5,000 Job setups $4.000 General factory 2,000 Machine hours $36,000