Methuen Corporation makes a special - purpose machine, D4H, used in the textile industry. Methuen has designed the D4H machine for 2020 to be distinct from its competitors. It has been generally regarded as a superior machine. Methuen presents the following data for 2019 and 2020.

2019. 2020

1. Units of D4H Produced and sold 225 240

2. Selling Price $. 40,000 $ 43,000

3. Direct Materials (Kilograms) 325,000. 330,000

4. Direct Material cost per Kilogram $ 9.00 $ 10.00

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 Consumer- Service Costs 95 Customers 90 Customers

9. Total Selling and customer- service costs $. 1,045,000 $ 900,000

10. Selling and customer- service capacity per $ 11,000. $10,000

Customer.

a) Manufacturing Amount of Unused Capacity Cost

b) Selling and customer serivce