Kansas Industries manufactures electronic testing equipment. Kansas also installs the equipment at customers' sites and ensures that it functions smoothly. Additional information on the manufacturing and installation (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. Read the requirements. Requirement 1. Kansas's engineers have found a way to reduce equipment manufacturing time. The new method would cost an additional $50 per unit and would allow Kansas to manufacture 27 additional units a year. Should Kansas implement the new method? Show your calculations. Begin by determining the formula you will use in all the requirements to make your decision. 1 Requirements Data Table - X Equipment Manufactured Annual capacity Equipment manufactured and installed 550 units per year 500 units per year Equipment Installed 500 units per year 500 units per year 1. Kansas's engineers have found a way to reduce equipment manufacturing time. The new method would cost an additional $50 per unit and would allow Kansas to manufacture 27 additional units a year. Should Kansas implement the new method? Show your calculations. 2. Kansas's designers have proposed a change in direct materials that would increase direct material costs by $3.500 per unit. This change would enable Kansas to install 550 units of equipment each year. If Kansas makes the change, it will implement the new design on all equipment sold. Should Kansas use the new design? Show your calculations. 3. A new installation technique has been developed that will enable Kansas's engineers to install 17 additional units of equipment a year. The new method will increase installation costs by $70,000 each year. Should Kansas implement the new technique? Show your calculations. Kansas 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. Print Print Done Done