Requirement $1.$ Suppose Mason's designers implement the new design. Should Mason accept Ethan's order for $27,000$ T$971$ valves

Start by calculating the contribution margin per machine$-$hour for each product. Determine the formula, then enter the amounts to calc

$\backslash$table$[[,$CM per unit,$x,$Number of units per hour,$=,$CM per machine$-$hour$],[$V$262,10,,3,=$$$,30],[$T$971,9,,2,18,]]$

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Now, should Mason accept Ethan's order for $27,000$ T$971$ valves?

Mason should reject

Ethan Corporation's offer since capacity is constrained

and the contribution margin per machine$-$hour of the T$971$ valves is lower

than the V$262\text{'}$s already being produced.

Requirement $2.$ Should Mason implement the new design? Show your calculations.

Relevant costs of implementing the new design

$?$

Relevant benefits:

Savings in rework costs

$270,000$

Additional contribution margin

$900,000$

Requirements

Net relevant benefit $($cost$)$

$?$

Suppose Mason's designers implement the new design. Should Mason accept