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Please show step by step. CompDesk, Inc., makes a single model of an ergonomic desk (with chair) for computer usage. The desk is manufactured in
Please show step by step. CompDesk, Inc., makes a single model of an ergonomic desk (with chair) for computer usage. The desk is manufactured in building 1, and the chair is manufactured in bulding 2 Monthly capacities and production levels are as follows: Monthly capacity Monthly production Building 1 (Desks) 400 400 2 (Chairs) 500 400 The company will sella desk only with a chair and can sel 500 desks per month. The unts (desk with chair) sell for $273 each and have a variable cost of $116 each. Required: a. Is there a bottleneck at CompDesk in Building 1 or Building 2? O Building 1 O Building 2 b. CompDesk's production supervisors state they could increase building 1's affect the sales price. Variable cost per unit would increase by $16 for those produced on the weekend because of the premium paid to labor. Fixed costs would also increase by $18,200 per month. capacity by 100 desks per month by producing desks on the weekend. Producing on the weekend would s b-1. Calculate the differential operating profit (loss). (Losses and amounts to be deducted should be indicated with a minus sign.) Differential revenues Differential costs Fixed Variable
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