Question Help 0 Garcia Precision Tools makes outing tools for metalworking operations. It makes two types of tools: A, a regular cutting tool, and EX4, a high precision cutting tool. As is manufactured on a regular machine, but EX4 must be manufactured on both the regular machine and a high precision machine. The following information is available: (Click to view the information) Read the requirements Requirement 1. What product mix that is, how many units of A6 and EX4 - will maximize Garcia's operating income? Show your calculations. (Enter an amount in each input coll including zero balances) Begin by calling the benefit from only selling or EX4 AB EX4 Hours of constrained resource Los Not relevant bene Garda should use spacity to produce since then relevant benefits The additional contribution from selling Extrather than Ais to cover the additional costs of being the high precision machine Requirement 2. Suppose Garcia can increase the annual capacity of its regular machines by 16,000 machine hours at a cost of $40,000. Should arco increase the capacity of the machines by 16.000 machine hours by how much will Garcia's operating income increase or decrease Show your calculations Choose from any list of enter any number in the inputs and then continue to the next question Save for Later Garcia Precision Tools makes cutting tools for metalworking operations. It makes two types of tools: A6, a regular cutting tool, and EXA, a high precision cuting tool. As is manufactured on a regular machine, but EX4 must be manufactured on both the regular machine and a high precision machine. The following information is available !!! (Click to view the information) Read the requirements Requirement 2. Suppose Garcia can increase the annual capacity of its regular machines by 18,000 machine hown at a cost of $240,000. Should Garcis increase the capacity of the regular machined by 16,000 machine hours? By how much will Garcia's operating income increase or decrease Show your calculation Begin by calculating the benefit from only selling AB or EX4 with the increased capacity of the regular machine (Enter an nt in each input coll including zero balances.) As EX4 Hours of constrained resource Los Cost of increasing capacity Nervant benefit Should Gard increase the capacity of the regular machines by 10.000 machine hours? By how much wil Garcia's operating income increase? increase the capacity of the regular machine by 16.000 machine hors sporting Garde Income was by Choose from any or enter any number in the inputs and then continue to the next Save for Later Question Help Garcia Precision Tools makes cutting tools for metalworking operations. It makes two types of fools: As, a regular cutting tool, and EX1, a high precision cutting tool. A la manufactured on a regular machine, but EX4 must be manufactured on both the regular machine and a high precision machine. The following information is available Click to view the information.) Read the requirements Requirement 3. Suppose that the capacity of the regular machines has been increased to 66,000 hours Garcia has been approached by Curran Corporation to supply 25.000 units of another cutting tool V2 for $147 per unit. Garcia mut the accept the order for all 25.000 units or reject it totaly V2 is exactly like Ascept that is variable manufacturing cost is $80 per unit (it takes one hour to produce one unit of V2 on the regular machine, and variable marketing cost equals $18 per unit) What product mix should Garcia choose to maximize operating income? Show your calculations. First, determine the amount that should be used to determine Garcia should accept Curr's order. AG EX4 V2 Garcia acoepturar order Next, determine the products for and EXA that will maximire operating income song with the decision you made about Ourran's order for an amount in each input colinduding zero balances) AB X4 Hours of constrained our Choose from any list or enter wy number in the input fields and then continue to the next question S 4 % 5 2 3 6 8 9 0 W Q P E R. . S D F H K Read the requirements Garcia accept Curran's order. Next, determine the product mix for Ag and EX4 that will maximize operating income along with the decision you made about Curran's order. (Ender an amount in each input call including zero balances) EX4 Hours of constrained resource Less: Net relevant benefit What product mix should Garcia choose to madmire operating income? (Enter an amount in each input concluding roro balances units of V2 Based on the above calculations, the product mix that maximizes operating income is units of AB, and units of EX4 Choose from any list or enter any number in the input fields and then continue to the next question Save for Later MacBook Pro 8 6 4 2 3 R. . W E K H Data Table Is or A6 EX4 $ 105 Selling price 125 $ 170 Variable manufacturing cost per unit 70 $ Variable marketing cost per unit 18 $ 43 Budgeted total fixed overhead costs 425,000 $ 610,000 Hours required to produce one unit on the regular machine 1.0 0.5 Additional information includes the following: a. Garcia faces a capacity constraint on the regular machine of 50,000 hours per year. b. The capacity of the high-precision machine is not a constraint. c. Of the $610,000 budgeted fixed overhead costs of EX4, $370,000 are lease payments for the high-precision machine. This cost is charged entirely to EX4 because Garcia uses the machine exclusively to produce EX4. The company can cancel the lease agreement for the high-precision machine at any time without penalties d. All other overhead costs are fixed and cannot be changed hput cel th Print Done er in the input fields and then continue to the next question Requirement 1. What product mix - that is, how many units of A6 and EX4 - will maxime Begin by calculating the benefit from only selling A6 or EX4. ***** A6 Contribution margin per unit Contribution margin per hour of the constrained resource Fixed costs Lease costs of the high-precision machine Selling price per unit nefit is 7. The Total contribution margin Total selling price Requirement 2. Suppose Garcia can increase the annual capacity of its regular machines by 16, machine hours? By how much will Garcia's operating income increase or decrease? Show your ca Choose from any list or enter any number in the input fields and then continue to the next qui Save for Later esc FI S. 4 % 5 2