=+Anyprint’s current presses have a quality problem that causes variations in the shade of some colours. Its engineers suggest changing a key component in each press. The new component will cost $70 more than the old one. In the next year, Anyprint expects that with the new component it will: (1) save 14000 hours of rework; (2) save 850 hours of customer support; (3) move 225 fewer loads; (4) save 8000 hours of warranty repairs; and (5) sell an additional 140 printing presses, for a total contribution margin of

$1680000. Anyprint believes that, even as it improves quality, it will not be able to save any of the fixed costs of rework or repair.

Anyprint uses a one-year time period for this decision because it plans to introduce a new press at the end of the year.

Required 1 Should Anyprint change to the new component? Show your calculations.