5) Assume that the decision to make pool shades and trellises are considered to be long-term decisions and that Chandler would make these products one at a time as time is available so as not to delay any of the custom orders. As such, the resource usage approach would be a more appropriate approach to evaluating the decision to make the products. 5a) Compute the rates to be used for the resource usage view (show your work; Hint: please refer to data in Exhibit 3) Design/Drafting Engineering Fabrication Cost ($) Capacity Rate Powder coating Scheduling General factory 5b) Compute the incremental profit of making and selling the full demand of pool shades. 5c) Compute the average cost of making one pool shade. 5d) Compute the incremental profit of making and selling the full demand oftrellises 5e) Compute the average cost of making one trellis. Resource usage approach Product Line Unit sales price Incremental revenue (Unit sales price*Units) Material Design/Drafting Engineering Fabrication Powder coating Scheduling General factory Total cost Incremental Profit (Incremental revenue - Total b. Pool Shades Units or d. Trellises Only Activity Level (Resource Usage) Only 42,500.00 4,300.00 2,250,000.00 120 42,000.00 C. Exhibit 3 Purchase of Additional Capacity Purchase price of additional capacity Label /des. hr /eng. Hr. 6'/part Resource Design/Drafting Engineering Capacity of next step Cost Driver Cost of next step 2,000 design hours $ 2,000 /sq. ft. /job. Se. Fabrication 2,500 Powder coating 10,000 /mac. Hr. Scheduling 30 General factory 2,000 eng. hrs. $ parts $ square feet S job setups $ machine hrs $ 50,000.00 110,000.00 3,150.00 80,000.00 70,000.00 36,000.00 Units or Activity Level (Resource Usage) 60 25/des. hr 55/eng. hr 1.26/part 8/sq.ft. 2333.333333/set up 18/mach hr