Fast Print manufactures and sells 14,000 high-technology printing presses each year. The variable and fixed costs of rework and repair are as follows: (Click the icon to view the cost data.) Fast Print's current presses have a quality problem that causes variations in the shade of some colors. Its engineers suggest changing a key component in each press. (Click the icon to view the data on the new component.) Data table Variable Cost Fixed Cost Total Cost $ 76 $ 110 $ 186 Rework cost per hour Repair costs Customer support cost per hour 38 70 108 350 115 465 Transportation cost per load Warranty repair cost per hour 86 150 236 More info The new component will cost $55 more than the old one. In the next year, however, Fast Print expects that with the new component it will (1) save 12,875 hours of rework, (2) save 950 hours of customer support, (3) move 290 fewer loads, (4) save 4,800 hours of warranty repairs, and (5) sell an additional 125 printing presses, for a total contribution margin of $1,125,000. Fast Print believes that even as it improves quality, it will not be able to save any of the fixed costs of rework or repair. Fast Print uses a 1-year time horizon for this decision because it plans to introduce a new press at the end of the year. Requirement 1. Should TechnoPrint change to the new component? Show your calculations. Begin by selecting the formula and calculating the relevant cost amount. = Relevant costs = Select the formula you will use to calculate the relevant benefits of the quality items. Relevant benefits - of quality items Savings on rework costs Savings in customer support costs Savings in transportation costs Savings in warranty repair costs x x x x Select the formula you will use to calculate the total relevent benefits, and then calculate the amount. + Total relevant benefits + II = Because the expected relevant benefits of the expected relevant costs of the new component of TechnoPrint introduce the new component. Requirement 2. Suppose the estimate of 100 additional printing presses sold is uncertain. What is the minimum number of additional printing presses that TechnoPrint needs to sell to justify adopting the new component? (Round any calculations needed up to the nearest whole number.) Begin by determining the new incremental savings amount you need to use your in analysis and comparing it to the incremental costs. The incremental cost of the new component is v the incremental savings of