Mason Corporation makes a special-purpose machine, D4H, used in the textile industry. Mason has designed the D4H machine for 2020 to be distinct from its competitors. It has been generally regarded as a superior machine. Mason presents the following data for 2019 and 2020. (Click the icon to view the data.) Read the requirements. (Click the icon to view additional information.) 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. (a) Manufacturing (b) Selling and customer service Amount of unused Cost of unused capacity capacity 275 Data table 1. Units of D4H produced and sold 2. Selling price 3. Direct materials (kilograms) 2019 2020 210 225 39,000 $ 41,000 285,000 290,000 4. Direct material cost per kilogram 9.00 $ 9.50 5. Manufacturing capacity in units of D4H 275 275 6. Total conversion costs $ 2,145,000 $ 2,172,500 7. Conversion cost per unit of capacity $ 7,800 $ 7,900 8. Selling and customer-service capacity 95 customers 90 customers 9. Total selling and customer-service costs $ 1,045,000 $ 900,000 10. Selling and customer-service capacity per customer $ 11,000 $ 10,000 Print Done - More info Mason 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 Mason can support, not the actual number of customers it serves. Mason has 77 customers in 2019 and 84 customers in 2020. Print Done 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 Mason can add or reduce its manufacturing capacity in increments of 35 units. What is the maximum amount of costs that Mason could save in 2020 by downsizing manufacturing capacity? 3. Mason, in fact, does not eliminate any of its unused manufacturing capacity. Why might Mason not downsize? Print Done