Sensitivity to Cost Allocations (computer required): The Packing Department of Tonto Electronics (Problem 5-32, above) discovered that it could purchase a new computer to control its operations. If it acquires this computer, the direct costs of the Computer Service Department will decrease by 10 percent. The Packing Department will incur a period cost of $10,000 for the new system. No other service usages or total costs will change.

Required:

a. What is the reduction in costs charged to the Packing Department if the new computer is acquired?

b. Are there any other changes in costs charged to other producing departments as a result of the Packing Department's acquisition of the new computer?

c. If there are changes in costs charged to other producing departments, how would you explain these changes since the problem specified that no other costs would change?