The Boston Corporation manufactures filing cabinets in two operations: machining and finishing. It provides the following information: (Click the icon to view the department information.) Each cabinet sells for $95 and has direct material costs of $65 incurred at the start of the machining operation. Boston has no other variable costs. Boston can sell whatever output it produces. The following requirements refer only to the preceding data. There is no connection between the requirements. Read the Requirements Data table 1. Boston is considering using some modern jigs and tools in the finishing operation that would increase annual finishing output by 1,650 units. The annual cost of these jigs and to 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 would cost $32,000 per year. Should Boston implement the change? Show your calculations. 3. An outside contractor offers to do the finishing operation for 18,000 units at $6 per unit, triple the $2 per unit that it costs Boston to do the finishing in-house. Should 4. The Hendrix Corporation offers to machine 5,200 units at $2 per unit, half the $4 per unit that it costs Boston to do the machining in-house. Should Boston accept Hendrix's offer? Show your calculations. 5. Boston produces 2,600 defective units at the machining operation. What is the cost to Boston of the defective items produced? Explain your answer Requirement 1. Boston is considering using some modern jigs and tools in the finishing operation that would increase annual finishing output by 1,650 units. The annual cost of these jigs and tools is $40,000. Should Boston acquire these tools? Show your calculations. Producing 1,650 more units will generate contribution (throughput) margin and operating income because finishing is a bottleneck operation; machining is not . Select the formula, then enter the amounts to calculate the change in throughput contribution. The Boston Corporation manufactures filing cabinets in two operations: machining and finishing. It provides the following information: (Click the icon to view the department information.) Each cabinet sells for $95 and has direct material costs of $65 incurred at the start of the machining operation. Boston has no other variable costs. Boston can sell whatever output it produces. The following requirements refer only to the preceding data. There is no connection between the requirements. Read the Requirements Data table 1. Boston is considering using some modern jigs and tools in the finishing operation that would increase annual finishing output by 1,650 units. The annual cost of these jigs and to 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 would cost $32,000 per year. Should Boston implement the change? Show your calculations. 3. An outside contractor offers to do the finishing operation for 18,000 units at $6 per unit, triple the $2 per unit that it costs Boston to do the finishing in-house. Should 4. The Hendrix Corporation offers to machine 5,200 units at $2 per unit, half the $4 per unit that it costs Boston to do the machining in-house. Should Boston accept Hendrix's offer? Show your calculations. 5. Boston produces 2,600 defective units at the machining operation. What is the cost to Boston of the defective items produced? Explain your answer Requirement 1. Boston is considering using some modern jigs and tools in the finishing operation that would increase annual finishing output by 1,650 units. The annual cost of these jigs and tools is $40,000. Should Boston acquire these tools? Show your calculations. Producing 1,650 more units will generate contribution (throughput) margin and operating income because finishing is a bottleneck operation; machining is not . Select the formula, then enter the amounts to calculate the change in throughput contribution