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.

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.

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?

2019 2020 39 53 $ 35,000 $ 34,000 20,000 23,000 1. Number of jobs billed 2. Selling price per job 3. Architect labor-hours 4. Cost per architect labor-hour 5. Architect support capacity (number of jobs the firm can do) 6. Total cost of software-implementation support 7. Software-implementation support-capacity cost per job $ 31 $ 32 63 63 $ 207,900 $ 201,600 $ 3,300 $ 3,200 2019 2020 39 53 $ 35,000 $ 34,000 20,000 23,000 1. Number of jobs billed 2. Selling price per job 3. Architect labor-hours 4. Cost per architect labor-hour 5. Architect support capacity (number of jobs the firm can do) 6. Total cost of software-implementation support 7. Software-implementation support-capacity cost per job $ 31 $ 32 63 63 $ 207,900 $ 201,600 $ 3,300 $ 3,200