Global Novelties Auto Accessories Division The Auto Accessories Division (AAD) of Global Novelties manufactures three solar powered bobblehead figures. The budgeted sales and costs for these three products and their details appear in the following exhibit: As indicated in the above exhibit, machine costs are allocated to each product based on its use of machine time. Other fixed costs are factory related costs allocated to the AAD. These costs are treated as division support costs and are not allocated to the individual products. The budgeted sales units were developed by assigning available capacity to each product based on the product's profit per unit. For example, since the Bear product has the highest budgeted profit per unit, it was allocated available capacity to produce to the maximum demand. The same approach was used for the second and third allocations of capacity to the Cat and Dog products respectively. Return to the original information in this case. AAD can rent a piece of production equipment that would reduce materials and labour costs for all products by 5%. What is the most that AAD should be willing to rent this machine for the budget period? Global Novelties Auto Accessories Division The Auto Accessories Division (AAD) of Global Novelties manufactures three solar powered bobblehead figures. The budgeted sales and costs for these three products and their details appear in the following exhibit: As indicated in the above exhibit, machine costs are allocated to each product based on its use of machine time. Other fixed costs are factory related costs allocated to the AAD. These costs are treated as division support costs and are not allocated to the individual products. The budgeted sales units were developed by assigning available capacity to each product based on the product's profit per unit. For example, since the Bear product has the highest budgeted profit per unit, it was allocated available capacity to produce to the maximum demand. The same approach was used for the second and third allocations of capacity to the Cat and Dog products respectively. Return to the original information in this case. AAD can rent a piece of production equipment that would reduce materials and labour costs for all products by 5%. What is the most that AAD should be willing to rent this machine for the budget period