Merrimack Corporation makes a special-purpose machine, D4H, used in the textile industry. Merrimack has designed the...

Transcribed Image Text:

Merrimack Corporation makes a special-purpose machine, D4H, used in the textile industry. Merrimack has designed the D4H machine for 2020 to be distinct from its competitors. It has been generally regarded as a superior machine. Merrimack 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. Amount of unused capacity Cost of unused capacity (a) Manufacturing (b) Selling and customer service 25 5 Requirement 2. Suppose Merrimack can add or reduce its manufacturing capacity in increments of 35 units. What is the maximum amount of costs, if any, that Merrimack could save in 2020 by downsizing manufacturing capacity? Begin by selecting the formula you will use and then enter the amounts and calculate the maximum cost the company can save. (Complete all input fields. For amounts with a zero balance, enter a "0".) Maximum costs saved by downsizing Merrimack Corporation makes a special-purpose machine, D4H, used in the textile industry. Merrimack has designed the D4H machine for 2020 to be distinct from its competitors. It has been generally regarded as a superior machine. Merrimack 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. Amount of unused capacity Cost of unused capacity (a) Manufacturing (b) Selling and customer service 25 5 Requirement 2. Suppose Merrimack can add or reduce its manufacturing capacity in increments of 35 units. What is the maximum amount of costs, if any, that Merrimack could save in 2020 by downsizing manufacturing capacity? Begin by selecting the formula you will use and then enter the amounts and calculate the maximum cost the company can save. (Complete all input fields. For amounts with a zero balance, enter a "0".) Maximum costs saved by downsizing