Marshall Corporation makes a special-purpose machine, D4H, used in the textile industry. Marshall has designed the D4H machine for 2020 to be distinct from its competitors. It has been generally regarded as a superior machine. Marshall presents the following data for 2019 and 2020. (Click the icon to view the data.) (Click the icon to view additional information.) Read the Requirement 1. Calculate the amount and cost of (a) unused manufacturing capacity and (b) unused selling and customer-service capacity at the beginning of 2020 based on actual production and actual number of customers served in 2020 . Data table Requirements 1. Calculate the amount and cost of (a) unused manufacturing capacity and (b) unused selling and customer-service capacity at the beginning of 2020 based on actual production and actual number of customers served in 2020. 2. Suppose Marshall can add or reduce its manufacturing capacity in increments of 35 units. What is the maximum amount of costs that Marshall could save in 2020 by downsizing manufacturing capacity? 3. Marshall, in fact, does not eliminate any of its unused manufacturing capacity. Why might Marshall not downsize? More info Marshall produces no defective machines, but it wants to reduce direct materials usage per D4H machine in 2020. Conversion costs in each year depend on production capacity defined in terms of D4H units that can be produced, not the actual units produced. Selling and customer-service costs depend on the number of customers that Marshall can support, not the actual number of customers it serves. Marshall has 79 customers in 2019 and 86 customers in 2020 . Marshall Corporation makes a special-purpose machine, D4H, used in the textile industry. Marshall has designed the D4H machine for 2020 to be distinct from its competitors. It has been generally regarded as a superior machine. Marshall presents the following data for 2019 and 2020. (Click the icon to view the data.) (Click the icon to view additional information.) Read the Requirement 1. Calculate the amount and cost of (a) unused manufacturing capacity and (b) unused selling and customer-service capacity at the beginning of 2020 based on actual production and actual number of customers served in 2020 . Data table Requirements 1. Calculate the amount and cost of (a) unused manufacturing capacity and (b) unused selling and customer-service capacity at the beginning of 2020 based on actual production and actual number of customers served in 2020. 2. Suppose Marshall can add or reduce its manufacturing capacity in increments of 35 units. What is the maximum amount of costs that Marshall could save in 2020 by downsizing manufacturing capacity? 3. Marshall, in fact, does not eliminate any of its unused manufacturing capacity. Why might Marshall not downsize? More info Marshall produces no defective machines, but it wants to reduce direct materials usage per D4H machine in 2020. Conversion costs in each year depend on production capacity defined in terms of D4H units that can be produced, not the actual units produced. Selling and customer-service costs depend on the number of customers that Marshall can support, not the actual number of customers it serves. Marshall has 79 customers in 2019 and 86 customers in 2020
