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Merrimack Corporation makes a special-purpose D4H machine used in the textile industry. Merrimack has designed the D4H machine for 2021 to be distinct from its

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Merrimack Corporation makes a special-purpose D4H machine used in the textile industry. Merrimack has designed the D4H machine for 2021 to be distinct from its competitors. It has been generally regarded as a superior machine. Merrimack presents the following data for the years 2021 and 2022 (Click the icon to view the data.) (Click the icon to view more information.) Requirement 1. Where possible, calculate the amount and cost of unused capacity for (a) manufacturing, (b) selling and customer service, and (c) design at the beginning of 2022 based on 2022 production. If you could not calculate the amount and cost of unused capacity, indicate why not. Begin by calculating the amount of unused capacity for each department. Then, calculate the cost. (If it is not possible to calculate the amount or cost of unused capacity, leave the input cells blank.) Data table More info Merrimack produces no defective machines, but it wants to reduce direct materials usage per D4H machine in 2022. Manufacturing conversion costs in each year depend on production capacity defined in terms of D4H units that can be produced, not the actual units of D4H produced. Selling and customer-service costs depend on the number of customers that Merrimack can support, not the actual number of customers Merrimack serves. Merrimack has 78 customers in 2021 and 83 customers in 2022. At the start of each year, management uses its discretion to determine the number of design staff for the year. The design staff and its costs have no direct relationship with the quantity of D4H produced or the number of customers to whom D4H is sold Required 1. Where possible, calculate the amount and cost of unused capacity for (a) manufacturing, (b) selling and customer service, and (c) design at the beginning of 2022 based on 2022 production. If you could not calculate the amount and cost of unused capacity, indicate why not 2. Suppose Merrimack can add or reduce its manulacturing capacity in increments of 25 units. What is the maximum amount of costs that Merrimack could save by downsizing manufacturing capacity? 3. Merrimack, in fact, does not eliminate any of its unused manufacturing capacity. Why might Merrimack not downsize

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