Chaudry 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, Chaudry must deliver quality services at a low cost. Chaudry presents the following data for 2019 and 2020. (Click the icon to view the data.) Architect labor-hour costs are variable costs. Architect support costs for each year depend on the Architect support capacity that Chaudry chooses to maintain each year (that is, the number of jobs it can do each year). Architect support costs do not vary with the actual number of jobs done that year. Read the requirements. Data table 2019 2020 1. Number of jobs billed 2. Selling price per job 3. Architect labor-hours 35 53 $ 35,000 $ 23,000 26,000 31,000 4. Cost per architect labor-hour 5. Architect support capacity (number of jobs the firm can do) 6. Total cost of software-implementation support 32 $ 63 33 63 $ 144,900 $ 220,500 7. Software-implementation support-capacity cost per job $ 2,300 $ 3,500 Print Done 20, based on the number of jobs actually done in 2020. Requirements 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 Chaudry can add or reduce its architectural support capacity in increments of 10 units. What is the maximum amount of costs that Chaudry could save in 2020 by downsizing architectural support capacity? 3. Chaudry, in fact, does not eliminate any of its unused architectural support capacity. Why might Chaudry not downsize? Print Done support capacity? example, Chaudry may have chosen to downsize some more capacity if it could do so in increments of say, 5, rather than 10 units. Chaudry 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, Chaudry must deliver quality services at a low cost. Chaudry presents the following data for 2019 and 2020. (Click the icon to view the data.) Architect labor-hour costs are variable costs. Architect support costs for each year depend on the Architect support capacity that Chaudry chooses to maintain each year (that is, the number of jobs it can do each year). Architect support costs do not vary with the actual number of jobs done that year. Read the requirements. 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. Cost of unused capacity Requirement 2. Suppose Chaudry can add or reduce its architectural support capacity in increments of 10 units. What is the maximum amount of costs that Chaudry could save in 2020 by downsizing architectural support capacity? Maximum costs saved by downsizing Requirement 3. Chaudry, in fact, does not eliminate any of its unused architectural support capacity. Why might Chaudry not downsize? Select three statements that would explain why Chaudry might not downsize. Chaudry may choose not to downsize because it projects sales increases that would lead to a greater demand for and utilization of capacity. Chaudry may choose not to downsize because competitors will view it as a sign of weakness if they downsize. Chaudry 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. Chaudry may decide not to downsize because downsizing requires a significant reduction in capacity. For example, Chaudry may have chosen to downsize some more capacity if it could do so in increments of say, 5, rather than 10 units