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Questions is in the picture Question 2 (21 marks) Florida Company manufactures electronic testing equipment and installs the equipment at customers' sites. Additional information on

Questions is in the picture

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Question 2 (21 marks) Florida Company manufactures electronic testing equipment and installs the equipment at customers' sites. Additional information on the Manufacturing and Installation Departments is as follows: Manufactured Installation Department Department Annual capacity 350 units 300 units Equipment manufactured and installed 300 units 300 units Florida manufactures only 300 units per year because the Installation Department has only enough capacity to install 300 units. The equipment sells for $40,000 per unit (installed) and has direct material costs of $15,000. All costs other than direct material costs are fixed. Required: a) Florida's designers have proposed a change in direct materials that would increase direct material costs by $2,000 per unit produced. This change would enable Florida to install 320 units of equipment each year. If Florida makes the change, it will implement the new design on all equipment sold. Should Florida use the new design? Show your calculations. (4 marks)

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