\begin{tabular}{l|l} Scott Company manufactures a DVD player called Orlicon. & \multicolumn{2}{|l}{ As a result of the actions taken, quality has The company sells the player to discount stores throughout the country. This player is significantly less expensive than significantly improved in 2017 while rework and } \\ similar products sold by Scott's competitors, but the Orlicon & unit costs of the Orlicon have decreased. Scott has \\ reduced manufacturing capacity because capacity \\ offers just DVD playback, compared with DVD and Blu-ray & is no longer needed to support rework. Scott has \\ playback offered by competitor Nomad Manufacturing. & also lowered the Orlicon 's selling price to gain \\ Furthermore, the Orlicon has experienced production & market share and unit sales have increased. \\ problems that have resulted in significant rework costs. & Information about the current period (2017) and \\ Nomad 's model has an excellent reputation for quality. & last period (2016) follows. \\ & (Click the icon to view the information.) \\ (Click the icon to view additional information.) \end{tabular} Requirement 1. Calculate the amount and cost of (a) unused manufacturing capacity and (b) unused selling and customer-service capacity at the beginning of 2017 based on actual production and actual number of customers served in 2017. First, calculate the amount and cost of (a) unused manufacturing capacity. x[x[]=Costofunusedcapacity]= Data table More info Conversion costs in each year depend on production capacity defined in terms of kits that can be processed, not the actual kits started. Selling and customer-service costs depend on the number of customers that Scott can support, not the actual number of customers it serves. Scott has 140 customers in 2016 and 160 customers in 2017. Requirements 1. Calculate the amount and cost of (a) unused manufacturing capacity and (b) unused selling and customer-service capacity at the beginning of 2017 based on actual production and actual number of customers served in 2017. 2. Suppose Scott can add or reduce its selling and customer-service capacity in increments of 10 customers. What is the maximum amount of costs that Scott could save in 2017 by downsizing selling and customer-service capacity? 3. Scott, in fact, does not eliminate any of its unused selling and customer-service capacity. Why might Scott not downsize? \begin{tabular}{l|l} Scott Company manufactures a DVD player called Orlicon. & \multicolumn{2}{|l}{ As a result of the actions taken, quality has The company sells the player to discount stores throughout the country. This player is significantly less expensive than significantly improved in 2017 while rework and } \\ similar products sold by Scott's competitors, but the Orlicon & unit costs of the Orlicon have decreased. Scott has \\ reduced manufacturing capacity because capacity \\ offers just DVD playback, compared with DVD and Blu-ray & is no longer needed to support rework. Scott has \\ playback offered by competitor Nomad Manufacturing. & also lowered the Orlicon 's selling price to gain \\ Furthermore, the Orlicon has experienced production & market share and unit sales have increased. \\ problems that have resulted in significant rework costs. & Information about the current period (2017) and \\ Nomad 's model has an excellent reputation for quality. & last period (2016) follows. \\ & (Click the icon to view the information.) \\ (Click the icon to view additional information.) \end{tabular} Requirement 1. Calculate the amount and cost of (a) unused manufacturing capacity and (b) unused selling and customer-service capacity at the beginning of 2017 based on actual production and actual number of customers served in 2017. First, calculate the amount and cost of (a) unused manufacturing capacity. x[x[]=Costofunusedcapacity]= Data table More info Conversion costs in each year depend on production capacity defined in terms of kits that can be processed, not the actual kits started. Selling and customer-service costs depend on the number of customers that Scott can support, not the actual number of customers it serves. Scott has 140 customers in 2016 and 160 customers in 2017. Requirements 1. Calculate the amount and cost of (a) unused manufacturing capacity and (b) unused selling and customer-service capacity at the beginning of 2017 based on actual production and actual number of customers served in 2017. 2. Suppose Scott can add or reduce its selling and customer-service capacity in increments of 10 customers. What is the maximum amount of costs that Scott could save in 2017 by downsizing selling and customer-service capacity? 3. Scott, in fact, does not eliminate any of its unused selling and customer-service capacity. Why might Scott not downsize
