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Required: 1. If Chenango Industries purchases the JR63 units from Scott, the capacity Chenango Industries used to manufacture these parts would be idle. Should
Required: 1. If Chenango Industries purchases the JR63 units from Scott, the capacity Chenango Industries used to manufacture these parts would be idle. Should Chenango Industries decide to purchase the parts from Scott, the unit cost of JR63 would increase (or decrease) by what amount? 2. Assume Chenango Industries is able to rent out all its idle capacity for $89,000 per month. If Chenango Industries decides to purchase the 13 units from Scott Supply, Chenango's monthly cost for JR63 would increase (or decrease) by what amount? 3. Assume that Chenango Industries does not wish to commit to a rental agreement but could use its idle capacity to manufacture another product that would contribute $173,000 per month. If Chenango's management elects to manufacture JR63 in order to maintain quality control, what is the net amount of Chenango's cost from using the space to manufacture part JR63? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 If Chenango Industries purchases the JR63 units from Scott, the capacity Chenango Industries used to manufacture these parts would be idle. Should Chenango Industries decide to purchase the parts from Scott, the unit cost of JR63 would increa (or decrease) by what amount? per unit 1
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