Refer to problem 6. Thank you for answering

Problem 6 (Theory of Constraints, Throughput Contribution, Relevant Costs) The Zashi Corporation manufactures filing cabinets in two operations - machining and finishing. It provides the following information. Machining Finishing Annual capacity 100,000 units 80,000 units Annual production 80,000 units 80,000 units Fixed operating costs (excluding direct materials) P6,400,000 P4,000,000 Fixed operating costs per unit produced (P6,400,000 - 80,000; P4,000,000 +80,000) P80 per unit P50 per unit Each cabinet sells for P720 and has direct materials costs of P320 incurred at the start of the machining operation. Zashi has no other variable costs. Zashi can sell whatever output it produces. The following requirements refer only to the preceding data. There is no connection between the requirements. Required: 1. Zashi is considering using some modern jigs and tools in the finishing operation that would increase annual finishing output by 1,000 units. The annual cost of these jigs and tool is P300,000. Should Zashi 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 10,000 units and cost P50,000 per year. Should Zashi implement the change? Show your calculations. Problem 7 (Theory of Constraints, Throughput Contribution, Relevant Costs) Refer to the information in Problem 6 in answering the following requirements. There is no connection between the requirements. Required: 1. An outside contractor offers to do the finishing operation for 12,000 units at P100 per unit, double the P50 per unit that it costs Zashi to do the finishing in-house. Should Zashi accept the subcontractor's offer? Show your calculations. 2. The Rainee Corporation offers to machine 4,000 units at P40 per unit, half the P80 per unit that it costs Zashi to do the machining in-house. Should Zashi accept the subcontractor's offer? Show your calculations. Problem 8 (Theory of Constraints, Throughput Contribution, Quality) Refer to the information in Problem 6 in answering the following requirements. There is no connection between the requirements. Required: 1. Zashi produces 2.000 defective units at the machining operation. What is the cost to Zashi of the defective items produced? Explain your answer briefly. 2. Zashi produces 2,000 defective units at the finishing operation. What is the cost to Zashi of the defective items produced? Explain your answer briefly