ParkPrint manufactures and sells 17,500 high-technology printing presses each year. The variable and fixed costs of rework and repair are as follows. (Click on the icon to view variable and fixed costs of rework and repair.) ParkPrint's current presses have a quality problem that causes variations in the shade of some colours. Its engineers suggest changing a key component in each press. The new component will cost $78 more than the old one. In the next year, however, ParkPrint expects that with the new component, it will (1) save 13,800 hours of rework, (2) save 860 hours of customer support, (3) move 240 fewer loads, (4) save 8,300 hours of warranty repairs, and (5) sell an additional 160 printing presses, for a total contribution margin of $1,680,000. ParkPrint believes that even as it improves quality, it will not be able to save any of the fixed costs of rework or repair. ParkPrint uses a 1-year time horizon for this decision because it plans to introduce a new press at the end of the year. Required Requirement 1. Should ParkPrint change to the new component? Show your calculations. Fill in the table below for the cost of quality items and the contribution margin, and calculate the total cost savings. (Enter the amounts in whole dollars. Do not use a negative or minus sign to show savings.) Expected relevant benefits over the next year of choosing the new component Cost of quality items Savings in rework costs Savings in customer-support costs Savings in transportation costs Savings in warranty repair costs Opportunity costs Contribution margin Total cost savings Fill in the statement below. The expected relevant benefits does not exceed the expected relevant costs of the new component. Therefore, ParkPrint should introduce the new component. Requirement 2. Suppose the estimate of 160 additional printing presses sold is uncertain. What is the minimum number of additional printing presses that ParkPrint needs to sell to justify adopting the new component? The minimum number of additional printing presses that ParkPrint needs to sell to justify adopting the new component is Requirement 3. What other factors should managers at ParkPrint consider when making their decision about changing to a new component? that often cannot be quantified in terms of higher sales. also ParkPrint should consider factors such as the working in the company and their care and commitment to improving processes. Submit qe ParkPrint manufactures and sells 17,500 high-technology printing presses each year. The variable and fixed costs of rework and repair are as follows. (Click on the icon to view variable and fixed costs of rework and repair.) ParkPrint's current presses have a quality problem that causes variations in the shade of some colours. Its engineers suggest changing a key component in each press. The new component will cost $78 more than the old one. In the next year, however, ParkPrint expects that with the new component, it will (1) save 13,800 hours of rework, (2) save 860 hours of customer support, (3) move 240 fewer loads, (4) save 8,300 hours of warranty repairs, and (5) sell an additional 160 printing presses, for a total contribution margin of $1,680,000. ParkPrint believes that even as it improves quality, it will not be able to save any of the fixed costs of rework or repair. ParkPrint uses a 1-year time horizon for this decision because it plans to introduce a new press at the end of the year. Required Requirement 1. Should ParkPrint change to the new component? Show your calculations. Fill in the table below for the cost of quality items and the contribution margin, and calculate the total cost savings. (Enter the amounts in whole dollars. Do not use a negative or minus sign to show savings.) Expected relevant benefits over the next year of choosing the new component Cost of quality items Savings in rework costs Savings in customer-support costs Savings in transportation costs Savings in warranty repair costs Opportunity costs Contribution margin Total cost savings Fill in the statement below. The expected relevant benefits does not exceed the expected relevant costs of the new component. Therefore, ParkPrint should introduce the new component. Requirement 2. Suppose the estimate of 160 additional printing presses sold is uncertain. What is the minimum number of additional printing presses that ParkPrint needs to sell to justify adopting the new component? The minimum number of additional printing presses that ParkPrint needs to sell to justify adopting the new component is Requirement 3. What other factors should managers at ParkPrint consider when making their decision about changing to a new component? that often cannot be quantified in terms of higher sales. also ParkPrint should consider factors such as the working in the company and their care and commitment to improving processes. Submit qe