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Ashley Technology Inc. manufactures a scrambling device for cellular telephones. The devices main component is a delicate part, CT140. CT140 is easily damaged and requires

Ashley Technology Inc. manufactures a scrambling device for cellular telephones. The devices main component is a delicate part, CT140. CT140 is easily damaged and requires careful handling. Once damaged, it must be discarded. The firm hires only skilled laborers to manufacture and install CT140; however, some are still damaged. Robotic instruments process all other parts. Ashleys operating data for 2 years are as follows: 2019 2018Units manufactured 750,000 1,000,000 Number of CT140 used 900,000 1,050,000 Number of direct labor hours spent 150,000 200,000 Cost of CT140 per unit$156 $135 Direct labor wage rate per hour$56 $62 Assume that fixed manufacturing costs are $50 million in both 2018 and 2019.

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