\begin{tabular}{l|l} Crane Associates is an architectural firm that has been \\ in practice only a few years. Because it is a relatively \\ new firm, the market for the firm's services is very \\ competitive. To compete successfully, Crane must \\ deliver quality services at a low cost. Crane presents \\ the following data for 2019 and 2020 . \end{tabular} Requirement 1. Calculate the amount and cost of unused architectural support capacity at the beginning of 2020 , based on the number of jobs actually done in 2020 . \begin{tabular}{lrrr} & 2019 & \multicolumn{2}{c}{2020} \\ \hline 1. Number of jobs billed & 43 & 48 \\ 2. Selling price per job & $ & 34,000$ & 29,000 \\ 3. Architect labor-hours & 25,000 & 29,000 \\ 4. Cost per architect labor-hour & $ & 38$ & 39 \\ 5. Architect support capacity (number of jobs the firm can do) & 63 & 63 \\ 6. Total cost of software-implementation support & $ & 157,500$176,400 \\ 7. Software-implementation support-capacity cost per job & $ & 2,500$ & 2,800 \end{tabular} 1. Calculate the amount and cost of unused architectural support capacity at the beginning of 2020 , based on the number of jobs actually done in 2020 . 2. Suppose Crane can add or reduce its architectural support capacity in increments of 15 units. What is the maximum amount of costs that Crane could save in 2020 by downsizing architectural support capacity? 3. Crane, in fact, does not eliminate any of its unused architectural support capacity. Why might Crane not downsize? Requirement 1. Calculate the amount and cost of unused architectural support capacity at the beginning of 2020 , based on the number of jobs actually done in 2020 . First select the formula, then enter the appropriate amounts to calculate cost of unused architectural support capacity at the beginning of 2020 . Requirement 2. Suppose Crane can add or reduce its architectural support capacity in increments of 15 units. What is the maximum amount of costs that Crane could save in 2020 by downsizing architectural support capacity? Requirement 3. Crane, in fact, does not eliminate any of its unused architectural support capacity. Why might rane not downsize? Select three statements that would explain why Crane might not downsize. Crane may choose not to downsize because it wants to appear as though it has the capacity to produce many more units for potential customers. Not reducing significant capacity by laying off employees boosts employee morale and keeps employees more motivated and productive. Crane may choose not to downsize because competitors will view it as a sign of weakness if they downsize. Crane may decide not to downsize because downsizing requires a significant reduction in capacity. For example, Crane may have chosen to downsize some more capacity if it could do so in increments of say, 10 , rather than 15 units. Crane may choose not to downsize because it projects sales increases that would lead to a greater demand for and utilization of capacity. \begin{tabular}{l|l} Crane Associates is an architectural firm that has been \\ in practice only a few years. Because it is a relatively \\ new firm, the market for the firm's services is very \\ competitive. To compete successfully, Crane must \\ deliver quality services at a low cost. Crane presents \\ the following data for 2019 and 2020 . \end{tabular} Requirement 1. Calculate the amount and cost of unused architectural support capacity at the beginning of 2020 , based on the number of jobs actually done in 2020 . \begin{tabular}{lrrr} & 2019 & \multicolumn{2}{c}{2020} \\ \hline 1. Number of jobs billed & 43 & 48 \\ 2. Selling price per job & $ & 34,000$ & 29,000 \\ 3. Architect labor-hours & 25,000 & 29,000 \\ 4. Cost per architect labor-hour & $ & 38$ & 39 \\ 5. Architect support capacity (number of jobs the firm can do) & 63 & 63 \\ 6. Total cost of software-implementation support & $ & 157,500$176,400 \\ 7. Software-implementation support-capacity cost per job & $ & 2,500$ & 2,800 \end{tabular} 1. Calculate the amount and cost of unused architectural support capacity at the beginning of 2020 , based on the number of jobs actually done in 2020 . 2. Suppose Crane can add or reduce its architectural support capacity in increments of 15 units. What is the maximum amount of costs that Crane could save in 2020 by downsizing architectural support capacity? 3. Crane, in fact, does not eliminate any of its unused architectural support capacity. Why might Crane not downsize? Requirement 1. Calculate the amount and cost of unused architectural support capacity at the beginning of 2020 , based on the number of jobs actually done in 2020 . First select the formula, then enter the appropriate amounts to calculate cost of unused architectural support capacity at the beginning of 2020 . Requirement 2. Suppose Crane can add or reduce its architectural support capacity in increments of 15 units. What is the maximum amount of costs that Crane could save in 2020 by downsizing architectural support capacity? Requirement 3. Crane, in fact, does not eliminate any of its unused architectural support capacity. Why might rane not downsize? Select three statements that would explain why Crane might not downsize. Crane may choose not to downsize because it wants to appear as though it has the capacity to produce many more units for potential customers. Not reducing significant capacity by laying off employees boosts employee morale and keeps employees more motivated and productive. Crane may choose not to downsize because competitors will view it as a sign of weakness if they downsize. Crane may decide not to downsize because downsizing requires a significant reduction in capacity. For example, Crane may have chosen to downsize some more capacity if it could do so in increments of say, 10 , rather than 15 units. Crane may choose not to downsize because it projects sales increases that would lead to a greater demand for and utilization of capacity
