Question: Need help with this question. Please see provided data tables and then question 4 at bottom. THankyou! Exhibit 1 Resource Design/Drafting Engineering Fabrication Powder coating
Need help with this question. Please see provided data tables and then question 4 at bottom. THankyou!




Exhibit 1 Resource Design/Drafting Engineering Fabrication Powder coating Scheduling General factory Existing Capacity Available and Used and Capacity Costs Current capacity and usage (annual) Practical Purchased Cost Used Capacity Cost Driver of Capacity Capacity 20,000 design hours $ 500,000.00 19,500 15,000 engineering hr $ 750,000.00 14,750 40,000 parts $ 30,000.00 39,000 400,000 square feet $1,800,000.00 210,000 750 job setups $ 756,000.00 640 80,000 machine hrs $2,400,000.00 64,000 Exhibit 2 Resource needs for potential new products Pool shade Trellis Cost Driver requirements requirements 30 20 4 Resource Design/Drafting Engineering Fabrication Powder coating Scheduling General factory 2 22 40 design hours engineering hrs parts square feet job setups machine hrs 170 1600 1 80 1 10 Selling price per unit Material cost per unit Pool shade 42,500.00 18,750.00 Trellis 4,300.00 700.00 Desired profit on sales Demand Pool shades Demand Trellises 0.30 120 60 Exhibit 3 Resource Design/Drafting Engineering Fabrication Powder coating Scheduling General factory Purchase of Additional Capacity Purchase price of additional capacity Capacity of Cost of next next step Cost Driver step 2,000 design hours $ 50,000.00 2,000 eng. hrs. $ 110,000.00 2,500 parts $ 3,150.00 10,000 square feet $ 80,000.00 30 job setups $ 70,000.00 2,000 machine hrs $ 36,000.00 4) 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. 4a) Compute the net change in cash of making and selling the full demand of pool shades. 4b) Compute the net change in cash of making and selling the full demand of trellises. 4c) Compute the net change in cash of making and selling the full demand of both pool shades and trellises. Resource Spending Approach a. Full demand b. Full demand C. Full demand Pool Shades Trellises Both Product Line Only Only Products Unit sales price Incremental revenue Material Design/Drafting Engineering Fabrication Powder coating Scheduling General factory Total cost Incremental Profit
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