Dupper Company manufactures an electronic component, ZP$98.$ This component is significantly less expensive than similar products sold by Dupper's

competitors. Order$-$processing time is very short; however, approximately $10\%$ of products are defective and retumed by the customer. Returns and refunds are

handled promptly. Yedi Manufacturing. Dupper's main competior, has a higher$-$priced product with almost no defects but a longer order$-$processing time.

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Conversion costs in each year depend on production capacity defined in terms of ZP$98$ units that can be produced, not the actual units produced. Seling

and customer$-$service costs depend on the number of customers that Dupper can support, not the actual number of customers it serves. Dupper has $85$ customers

$2021$ and $95$ customers in $2022.$ At the start of each year, management uses its discretion to determine the number of advertising stafl for the year. Advertising stafl

and its costs have no direct relationship with the quantity of ZP$98$ units produced and sold or the number of customers who buy ZP$98.$

Required

Requirement $1.$ Calculate the amount and cost of unused capacity for:

a$.$ Manufacturing

b$.$ Sales and customer service

c$.$ Advertising

If you are unable to calculate the amount and cost of unused capacity, explain why.

Begin by calculating the amount of unused capacity for each department. Then, calculate the cost. $($If it is not possible to calculate the amount or cost of

unused capacity, leave the input cells blank. If any amount is zero, enter $"0^{**}.)$

Assume that in $2022,$ Dupper has changed its processes and trained workers to

recognize quality problems and fix them before products are finished and shipped

to customers. Quality is now at an acceptable level. Cost per kilogram of materials

is about the same as before, but conversion costs are higher, and Dupper has

raised its selling price in line with the market. Sales have increased and returns

have decreased. Dupper's managers attribute this to higher quality and a price that

is still less than Yedi's. Information about treurrent period $(2022)$ and last period

$(2021)$ follows.