Meredith Corporation makes a special-purpose machine, D4H, used in the textile industry. Meredith has designed the D4H machine for 2020 to be distinct from its competitors. It has been generally regarded as a superior machine. Meredith presents the following data for 2019 and 2020. Data table 1. Units of D4H produced and sold 2. Selling price 3. Direct materials (kilograms) 4. Direct material cost per kilogram 5. Manufacturing capacity in units of D4H 6. Total conversion costs 7. Conversion cost per unit of capacity 8. Selling and customer-service capacity 9. Total selling and customer-service costs 10. Selling and customer-service capacity per customer 2019 2020 220 38,000 $ 320,000 8.75 $ 230 41,000 335,000 9.25 300 300 2,100,000 $ 7,000 $ 2,175,000 7,250 95 customers 90 customers 950,000 $ 891,000 10,000 $ 9,900 More info Meredith 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 Meredith can support, not the actual number of customers it serves. Meredith has 77 customers in 2019 and 82 customers in 2020. Print Done