P19-31 (similar to) Question Help The Hayden Corporation sells 200,000 V262 valves to the automobile and truck industry. Hayden has a capacity of 120,000 machine-hours and can produce two valves per machine-hour. V262's contribution margin per unit is $5. Hayden sells only 200,000 valves because 40,000 valves (20% of the good valves) need to be reworked. It takes one machine-hour to rework two valves, so 20,000 hours of capacity are used in the rework process. Hayden's rework costs are $360,000. Rework costs consist of the following: (Click the icon to view the rework costs.) (Click the icon to view additional information.) Read the requirements. Requirement 1. Suppose Hayden's designers implement the new design. Should Hayden accept Colden's order for 26,000 T971 valves? Show your calculations. Start by calculating the contribution margin per machine-hour for each product. Determine the formula, then enter the amounts to calculate each product's contribution margin per machine-hour. CM per machine-hour V262 T971 = X 1 More Info Direct materials and direct rework labor (variable costs): $4 per unit Fixed costs of equipment, rent, and overhead allocation: $5 per unit i More Info Hayden's process designers have developed a modification that would maintain the speed of the process and ensure 100% quality and no rework. The new process would cost $350,000 per year. The following additional information is available: The demand for Hayden's V262 valves is 400,000 per year. The Colden Corporation has asked Hayden to supply 26,000 T971 valves (another product) if Hayden implements the new design. The contribution margin per T971 valve is $8. Hayden can make one T971 valve per machine-hour with 100% quality and no rework. P19-31 (similar to) Question Help The Hayden Corporation sells 200,000 V262 valves to the automobile and truck industry. Hayden has a capacity of 120,000 machine-hours and can produce two valves per machine-hour. V262's contribution margin per unit is $5. Hayden sells only 200,000 valves because 40,000 valves (20% of the good valves) need to be reworked. It takes one machine-hour to rework two valves, so 20,000 hours of capacity are used in the rework process. Hayden's rework costs are $360,000. Rework costs consist of the following: (Click the icon to view the rework costs.) (Click the icon to view additional information.) Read the requirements. Requirement 1. Suppose Hayden's designers implement the new design. Should Hayden accept Colden's order for 26,000 T971 valves? Show your calculations. Start by calculating the contribution margin per machine-hour for each product. Determine the formula, then enter the amounts to calculate each product's contribution margin per machine-hour. CM per machine-hour V262 T971 = X 1 More Info Direct materials and direct rework labor (variable costs): $4 per unit Fixed costs of equipment, rent, and overhead allocation: $5 per unit i More Info Hayden's process designers have developed a modification that would maintain the speed of the process and ensure 100% quality and no rework. The new process would cost $350,000 per year. The following additional information is available: The demand for Hayden's V262 valves is 400,000 per year. The Colden Corporation has asked Hayden to supply 26,000 T971 valves (another product) if Hayden implements the new design. The contribution margin per T971 valve is $8. Hayden can make one T971 valve per machine-hour with 100% quality and no rework