Chicago Corporation manufactures filing cabinets in two operations machining and finishing. It provides the following information Click the icon to view the department information) h cabinet sells for $65 and has direct material costs of $30 incurred at the start of the machining operation. Chicago has no other variable costs. Chicago can sell whatever output connection between the requirements X Requirements i Data Table 1. Chicago is considering using some modern jigs and tools in the finishing operation that would increase annual finishing output by 1,550 units. The annual cost of these jigs and tools is $45,000. Should Chicago acquire these tools? Show your calculations The production manager of the Machining Department has submitted a proposal to do faster setups that would increase the annual capacity of the Machining Department by 12,000 units and would cost $32,000 per year Should Chicago implement the change? Show your calculations Machining Finishing Annual capacity 130,000 units 100,000 units Annual production 100,000 units 100,000 units 2. Fixed operating costs (excluding direct materials) $1,400,000 $1,200,000 Fixed operating costs per unit produced $14 per unit $12 per unit An outside contractor offers to do the finishing operation for 8,000 units at $24 per unit, double the $12 per unit that it costs Chicago to do the finishing in-house. Should Chicago accept the subcontractor's offer? Show your calculations 3. ($1,400,000/100,000, $1,200,000/100,000) Done Print 4. The Harley Corporation offers to machine 6,800 units at $7 per unit, half the $14 per unit that it costs Chicago to do the machining in house. Should Chicago accept Harley's offer? Show your calculations 5 Chicago produces 1,400 defective units at the machining operation. What is the cost to Chicago of the defective items produced? Explain your answer briefly Chicago produces 1.400 defective units at the finishing operation. What is the posal to do faster setups that would increase the annual capacity of the Machining Department b ext question. 6. cost to Chicago of the defective items produced? Explain your answer brefly