SpeedPrint manufactures and sells 18,000 high-technology printing presses each year. The variable and fixed costs of rework and repair are as follows: (Click the icon to view the cost data.) Speed Print's current presses have a quality problem that causes variations in the shade of some colors. Its engineers suggest changing a key component in each press. (Click the icon to view the data on the new component.) Read the requirements. Requirement 1. Should SpeedPrint change to the new component? Show your calculations. Begin by selecting the formula and calculating the relevant cost amount. More info X X = Relevant costs Data table Variable Cost Fixed Cost Total Cost Rework cost per hour $ 79 $ 115 $ 194 Customer support cost per hour 35 55 90 Transportation cost per load Warranty repair cost per hour 350 115 465 89 150 239 The new component will cost $70 more than the old one. In the next year, however, SpeedPrint expects that with the new component it will (1) save 14,000 hours of rework, (2) save 850 hours of customer support, (3) move 225 fewer loads, (4) save 8,000 hours of warranty repairs, and (5) sell an additional 140 printing presses, for a total contribution margin of $1,680,000. Speed Print believes that even as it improves quality, it will not be able to save any of the fixed costs of rework or repair. Speed Print uses a 1-year time horizon for this decision because it plans to introduce a new press at the end of the year. Repair costs Get more help Print Done Print Done