Please help with problem and explain to me how it was solved.
The Kansas Corporation manufactures filing cabinets in two operations: machining and finishing. It provides the following information: BE! Click the loon to view the department information Each cabinet sells for $105 and has direct material costs of $70 incurred at the start of the machining operation. Kansas has no other variable costs. Kansas can sell whatever output it produces. The following requirements refer only to the preceding data. There is no connection between the requrements. Read the requirements Requirement 1. Kansas is considering using some modern jigs and tools in the finishing operation that would increase annual finishing output by 1.300 units. The annual cost of these jigs and tools is $30,000. Should Kansas acquire these tools? Show your calculations, Producing 1,300 more units will generale contribution (throughputy margin and operating income because - X Requirements X Data Table Finishing Annual capacity Annual production Fixed operating costs (excluding direct materials) Fixed operating costs per unit produced ($640,000 + 160,000; $160,000 + 160,000) Machining 180.000 units 180,000 units 160.000 units 160,000 units $640,000 $160,000 1. Kansas is considering using some modern jigs and tools in the finishing operation that would increase annual finishing output by 1,300 units. The annual cost of these jigs and tools is $30,000. Should Kansas acquire these tools? Show your calculations. 2. The production manager of the Machining Department has submitted a proposal to do faster setups that would increase the annual capacity of the Machining Department by 11,000 units and would cost $34,000 per year. Should Kansas implement the change? Show your calculations. 3. An outside contractor offers to do the finishing operation for 14,000 units at S3 per unit, triple the $1 per unit that it costs Kansas to do the finishing in house. Should Kansas accept the subcontractor's offer7 Show your calculations. The Halland Carparation offers to machine 8,800 units at $2 per unit, half the S4 per unit that it costs Kansas to do the machining in-house. Should Kansas accept Halland's affer7 Show your calculations. 5. Kansas produces 2 200 defective units at the machining operation. What is the cost to Kansas of the defective items produced? Explain your answer brielly 6. Kansas produces 2 200 defective units at the finishing operation. What is the cost to Kansas of the defective iteres produced? Explain your answer briefly. $4 per unit $1 per unit 4. Print Done Click to select your answers) and then click Check Answer Print Done
