McCarty Associates is a construction engineering firm that prepares detailed construction drawings for single-family homes. The market for this service is very competitive. To compete successfully McCarty must deliver quality service at low cost. McCarty presents the following data for 2019 and 2020. (Click the icon to view the data.) Engineering labor-hour costs are variable costs. Engineering support costs for each year depend on the engineering support capacity that McCarty chooses to maintain each year (that is, the number of jobs it can do each year). Engineering support costs do not vary with the actual number of jobs done in a year. Read the requirements. Requirement 1. Calculate the amount and cost of unused engineering support capacity at the beginning of 2020, based on the number of jobs actually done in 2020. The amount of unused capacity is jobs and the cost of unused capacity is Requirement 2. Suppose McCarty can add or reduce its engineering support capacity in increments of 50 jobs. What is the maximum amount of costs that McCarty could save in 2020 by downsizing engineering support capacity? McCarty can reduce engineering support capacity by for a cost savings of This is the amount of costs McCarty can save by downsizing in 2020. It 50 jobs) because it would capacity to do the reduce capacity further (by another jobs in 2020. Requirement 3. McCarty, in fact, does not eliminate any of its unused engineering support capacity. Why might McCarty not downsize? McCarty may have chosen not to downsize because it projects sales in the near term that would lead to reduction in capacity and capability of the organization. Not reducing significant capacity by laying off employees demand for and utilization of capacity. McCarty may have also decided not to downsize because downsizing requires morale and