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1. What product mix - that is, how many units of A6 and EX4 - will maximize Rushton's operating income? Show your calculations. 2. Suppose

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1. What product mix - that is, how many units of A6 and EX4 - will maximize Rushton's operating income? Show your calculations. 2. Suppose fushton can increase the annual capacty of its regular machines by 17,000 machine hours at a cost of $136,000 Should Rushon increase the capacty of the regular machines by 17,000 machine hours? By how much will Fushton's operating income increase or decrease? Show your calculations. 3. Suppose that the capacity of the regular machines has been increased to 67,000 hours. Fushton has been approoched by Bale Corporation to supply 24,000 units of another culling tool, V2, for $160 per unil. Rushicon must either accept the order for all 24,000 unts or reject it totaly. V2 is exactly like A5 except that its varlable manufacturing cost is $50 per unit. (it takes 1 hour to produce one unit of 22 on the regular machine, and variable marketing cost equals $5 per unit.) What product mix ahould Rushton choose to maximize operating income? Show your calculations Data table Additional information includes the following: a. Rushton 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 $670,000 budgeted fixed overhead costs of EX4, $370,000 are lease payments for the high-precision machine. This cost is charged entirely to EX4 because Rushton 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. Requirement 1. What product mik - that is, how many units of A6 and EX4 - Wil maximize Rushor's operalng income? Show yotr caicuiasons. (Enter an amount in each input cell noliding zere balances.) Begin by calculating the benefit trom only solling AS or EXA

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