Rushton Precision Tools makes cutting tools for metalworking operations. It makes two types of tools Al, a regular cutting tool, and EX4, a high precision cutting tool. As is manufactured on a regular machine, but EXA must be manufactured on both the regular machine and a high-precision machine The following information is available in the data table provided (Click to view the information) Bequ Requirement 1. What prod Information Begin by calculating the be AB EX4 Contribution margin per h Hours of constrain Total contribution margin Lease costs of the Selling price Vanable manufacturing cost per unit Variable marketing cost per unit $ 165 265 $ 80' 150 1 10 S 45 Budgeted total Exed overhead costs $ 640,000 $ 1.060.000 Nel relevant beneft Houts required to produce one unit on the regular machine 10 05 Additional information includes the following - X Rushton should use its cap machine Requirement 2. Suppose F hours? By how much wil R Choose from any list or of a. Rushton faces a capacity constraint on the regular machine of 50.000 hours per year b. The capacity of the high precision machine is not a constraint e. Of the $1.000.000 budgeted fixed overhead costs of EX4 $540.000 are lease payments for the high-precision machine. This cost is charged entirely to EX4 because Rushon uses the machine exclusively to produce EX4 The company can cancel the lease agreement for the high-precision machine at any time without penalties d. All other overhead casts are fixed and cannot be charged to cover the additional costs of leasing the high-precision d Rushton increase the capacity of the regular machines by 18.000 machine Rushton Precision Tools makes cutting tools for metalworking operations. It makes two types of tools. Ali, a regular cuffing tool and EX4, a high precision cating tool A5 is manufactured on a regular machine, but EXA must be manufactured on both the regular machine and a high-precision machine. The following information is available in the data table provided (Cick to view the information) Required Requirement 1. What product mix-that is, how many units of A6 and EX4-ell maximize Rushton's operating income? Show your calculations Begin by calculating the benefit from only selling AG or EX4 (Enter an amount in each input cell, including zero balances) Contribution margin per hour of the constrained resource K Hours of contained resource Total contribution margin Less Lease costs of the high-precision machine Net relevant beneft A6 EX4 Rushton should use its capacity to produce since the net relevant beneft is The additional contribution from selling EX4 rather than Al is to cover the additional costs of leasing the high-precision machine Requirement 2. Suppose Ruston can increase the annual capacity of a regular machines by 18.000 machine-hours at a cost of $50 000 Should Rushton increase the capacity of the regular machines by 18.000 machine hours? By hour much will Rushton's operating income increase or decrease? Show your calculations Choose from any list or enter any number in the input fields and then continue to the next question Rushton Precision Tools makes cutting tools for metalworking operations. It makes two types of tools Al, a regular cutting tool, and EX4 a high precision cutting tool A is manufactured on a regular machine, but EX4 must be manufactured on both the regular machine and a high precision machine The following information is avalate in the data table provided (Cck to view the information) Besed Requirement 2. Suppose Rushton can increase the annual capacity of its regular machines by 18.000 machine-bours atac of $90.000 Should Rushton increase the capacity of the regular machines by 18.000 machine hours? by how much will Rushton's operating income increase or decrease? Show your calculations i Begin by calculating the benefit from only selling A6 or EX4 with the increased capacity of the regular machine (Enter an amount in each input out, including balance) . Hours of contra A EX4 Less Cast of increasing capacity Nat relevant bena Should Rushion increase the capacity of the regular machines by 18 000 machine hours? By how much will Rushton's operating income increase? Rushton increase the capachy of the regular machine by 18 500 machine hours Rushton's operating income will increase by Choose from any sist or enter any number as the input fields and then continue to the next question Rushton Precision Tools makes cutting tools for metalwoking operations. It makes two types of tools. A, a regular cutting look, and EX4, a high precision cutting termakan tangan M, L LA manufactured on both the regular machine d a high-precision machine The following information is available in the data table provided Bed Should Ruston increase the capacity of the regular machines by 10.000 machine hours? By how much will Rusher's operating income inc increase the capacity of the regular machine by 18,000 machine hours Rushton's operating income will increase by Rusan Requirement 3. Suppose that the capacity of the regular machines has been increased to 68.000 hours Rustum has been approached by Ranau Corporation ply 24.000 units of another ting tool V2 to 1250 per unt Rush must her accept the order for a reject totally V2 is exactly the A6 except that its variabis manulaching cost is $55 per unt of takes one hour to produce one unit af V2 on the regular machine and tproduct mix should Rushdan choose to maximize operating income? Show your calculos variatie marketing cost equals $10 per Fint damine the amount that should be used to determine if Rushton should accept Renau's order Rutton accept Rene's order because the AG EX4 V V2 Next determine the product mix for AG and EX4 that will maximis operating income along with the decision you made about Ranau's onder (Enter an amount is aach input cel including a balance) Al EXA Choose bom ang Est or enter any number in the input fets and then continue to the next question Rushton Precision Tools makes cutting tools for metalworking operations makes two types of tools A, a regular cutting tool, and EX4, a high precision cutting tool A is manufactured on a regular machine, bd A4 manufactured on both the regular machine and a high-precision machine. The tabowing information is available in the data table provided (Click to view the information) Be Rushton accept Ranau's order because the Al EXA 12 for V2 is the Next determine the product mix for A6 and EX4 that will maximize operating income along with the decision you made about Renau's order. (Enter an amount in each input col, including zere balances) Hours of contained A EX4 Less Net svart bee What product mix should Rushton choose to maximice operating income? Enter an acount in each input ca including zern balances) Choose from any set or enter any number in the input Sexts and then cornue to the next question Rushton accept Renau's order because the for V2 is the Next determine the product mix for Ali and EX4 that will maximize operating income along with the decision you made about Renau's order (Enter an amount in each input cell including zero balances) X Hours of constrained resource Less AG EX4 Nat relevant beneft What product mix should Rushton choose to maximize operating income? (Enter an amount in each input cell, including zero balances) Based on the above calculations, the product mix that maximizes operating income is units of V2. Choose from any list or enter any number in the input fields and then continue to the next question units of A6 and units of EX4