Edmonton Industries manufactures electronic testing equipment. Edmonton also installs the equipment at customers' sites and ensures that it functions smoothly. Additional information on the manufacturing and installation departments is as follows $($capacities are expressed in terms of the number of units of electronic testing equipment$)$:

$($Click to view the manufacturing and installation information.$)($Click the icon to view additional information.$)$ The following requirements refer only to the preceding data. There is no connection between the requirements.

Required

Manufacturing and installation information

$\backslash$table$[[,$Equipment Manufactured,Equipment Installed$],[$Annual capacity,$310$ units per year,$260$ units pet year$],[$Equipment manufactured and installed,$260$ units per year,$260$ units per year$]]$

Additional information

Edmonton manufactures only $260$ units per year because the installation department has only enough capacity to install $260$ units. The equipment sells for $$65,000$ per unit $($installed$)$ and has direct material costs of $$26,000.$ All costs other than direct material costs are fixed.

Required

Edmonton's engineers have found a way to reduce equipment manufacturing time. The new method would cost an additional $$520$ per unit and would allow Edmonton to manufacture $24$ additional units a year. Should Edmonton implement the new method? Show your calculations.

Edmonton's designers have proposed a change in direct materials that would increase direct material costs by $$1,800$ per unit. This change would enable Edmonton to install $310$ units of equipment each year. If Edmonton makes the change, it will implement the new design on all equipment sold. Should Edmonton use the new design? Show your calculations.

A new installation technique has been developed that will enable Edmonton's engineers to install $16$ additional units of equipment a year. The new method will increase installation costs by $$155,000$ each year. Should Edmonton implement the new technique? Show your calculations.

Edmonton is considering how to motivate workers to improve their productivity $($output per hour$).$ One proposal is to evaluate and compensate workers in the manufacturing and installation departments on the basis of their productivities. Do you think the new proposal is a good idea? Explain briefly.