Question: Please answer Requirement 1 through 3: Info and Data table are provided in first screenshot. Methuen Corporation makes a special-purpose machine, D4H, used in the
Please answer Requirement 1 through 3: Info and Data table are provided in first screenshot.



Methuen Corporation makes a special-purpose machine, D4H, used in the textile industry. Methuen has designed the D4H machine for 2020 to be distinct from its competitors. It has been generally regarded as a superior machine. Methuen presents the following data for 2019 and 2020. (Click the icon to view the data) (Click the icon to view additional information.) Read the requirements Requirement 1. Calculate the amount and cost of (a) unused manufacturing capacity and (b) unused selling and customer-service capacity at the beginning of 2020 based on actual production and actual number of customers served in 2020. Amount of unused Cost of unused capacity capacity - X (a) Manufacturing Data Table (b) Selling and customer service 2019 2020 1. Units of D4H produced and sold 245 265 More Info S S 39,000 37,000 $ 320,000 8.00 $ 275 330,000 8.75 S S 275 Methuen produces no defective machines, but it wants to reduce direct materials usage per D4H machine in 2020. Conversion costs in each year depend on production capacity defined in terms of D4H units that can be produced, not the actual units produced. Selling and customer-service costs depend on the number of customers that Methuen can support, not the actual number of customers it serves. Methuen has 79 customers in 2019 and 86 customers in 2020. 2. Selling price 3. Direct materials (kilograms) 4. Direct material cost per kilogram 5. Manufacturing capacity in units of D4H 6. Total conversion costs 7. Conversion cost per unit of capacity 8. Selling and customer-service capacity 9. Total selling and customer-service costs 10. Selling and customer-service capacity per customer S 2,117,500 $ 2,145,000 S S 7.700 $ 7,800 120 customers 115 customers S S 1,200,000 $ 1,127,000 S 10,000 $ 9,800 Print Done Print Done Help Me Solve This e Text Pages Get More Help Requirement 2. Suppose Methuen can add or reduce its manufacturing capacity in increments of 30 units. What is the maximum amount of costs, if any, that Methuen could save in 2020 by downsizing manufacturing capacity? Begin by selecting the formula you will use and then enter the amounts and calculate the maximum cost the company can save. (Complete all input fields. For amounts with a zero balance, enter a "0".) Number of units reduced Conversion cost per capacity Maximum costs saved by downsizing Requirement 3. Methuen, in fact, does not eliminate any of its unused manufacturing capacity. Why might Methuen not downsize? Select three statements that would explain why Methuen might not downsize. Methuen may be focused on product differentiation, which is key to its strategy, rather than on cost reduction. Methuen may choose not to downsize because downsizing requires a significant reduction in capacity. For example, Methuen may have chosen to downsize some more manufacturing capacity if it could do so in increments of say, 10, rather than 30 units. Methuen may choose not to downsize because competitors will view it as a sign of weakness if they downsize. Methuen may choose not to downsize because it wants to appear as though it has the capacity to produce many more units for potential customers. Methuen may choose not to downsize because it projects sales increases that would lead to a greater demand for and utilization of capacity
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