Capacity of next Resource step Cost Driver Cost of next step Design/Drafting 2,000 design hours $ 50,000.00 25 /des. hr Engineering 2,000 eng. hrs. $ 110,000.00 55 /eng. hr Fabrication 2,500 parts $ 3,150.00 1.26 /part Powder coating 10,000 square feet $ 80,000.00 8 /sq.ft. Scheduling 30 job setups $ 70,000.00 2333.33333333333 /set up General factory 2,000 machine hrs $ 36,000.00 18 /mach hr 4) Assume that Chandler considers the production of the pool shades and trellises to be a short-term decision. Because there is currently excess capacity in their processes, the company wants to evaluate the new products using a cash outlay approach. Compute the impact on Chandlers profits for each option. Use the table below (Row 200 to Row 213, Column B to Column E) to: 4a) Compute the net change in cash of making and selling the full demand of pool shades. 4b) Compute the net change in cash of making and selling the full demand of trellises. 4c) Compute the net change in cash of making and selling the full demand of both pool shades and trellises. Resource Spending Approach a. Full demand b. Full demand c. Full demand Pool Shades Trellises Both a. Pool Shades Product Line Only Only Products Hint (numbers in Column F through Only 4,300.00 Column M below will be Unit sales price 42,500.00 automatically updated after you Incremental revenue (Unit sales complete Part 2b) above): price *Units) Material 2,250,000.00 42,000.00 Excess (unused) capacity Design/Drafting 30 Engineering Fabrication 180 Powder coating 192000 scheduling 120 General factory 9600 Total cost Incremental Profit (Incremental revenue - Total cost) 4d