The Chicago 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 $105 and has direct material costs of $65 incurred at the start of the machining operation. Chicago has no other variable costs. Chicago 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 Requirement 1. Chicago is considering using some modern jigs and tools in the finishing operation that would increase annual finishing output by 1,550 units. The annual cost of these jigs and tools is $30,000. Should Chicago acquire these tools? Show your calculations. Select the formula, then enter the amounts to calculate the change in throughput contribution. Change in throughput contribution Should Chicago acquire these tools? The the incremental costs by in throughput contribution margin is implement the new design. Therefore, Chicago Requirement 2. The production manager of th 12,000 units and would cost $40,000 per year. al capacity of the Machining Department by Data Table implement the change to increase production. Requirement 3. An outside contractor offers to Chicago accept the subcontractor's offer? Shop Machining 140,000 units Finishing 120,000 units bo to do the finishing in-house. Should 120,000 units Select the formula you will use to calculate the Annual capacity Annual production Fixed operating costs (excluding direct materials) Fixed operating costs per unit produced ($1,200,000 = 120,000; $720,000 = 120,000) 120,000 units $1,200,000 in throughput contribution $720,000 $10 per unit $6 per unit Print Done Chicago contract with an in throughput contribution is incremental costs by Requirement 4. The Henry Corporation offers to machine 6,000 units at $5 per unit, half the $10 per unit that offer? Show your calculations. costs Chicago to do the machining in-house. Should Chicago accept Henry's Operating costs in the Machining Department of $1,200,000, or $10 per unit, are costs. Chicago save any of these costs by subcontracting machining 6,000 units to Henry. Total costs will be greater by Chicago accept Henry's order Requirement 5. Chicago produces 1,400 defective units at the machining operation. What is the cost to Chicago of the defective items produced? Explain your answer briefly The cost of 1,400 defective units at the machining operation is Requirement 5. Chicago produces 1,400 defective units at the machining operation. What is the cost to Chicago of the defective items produced? Explain your answer briefly. The cost of 1,400 defective units at the machining operation is Because the Machining Department has a capacity of 140,000 units, it production to the Finishing Department. Therefore, there Machining Department. produce and transfer the annual opportunity cost of producing defective units in the Requirement 6. Chicago produces 1,400 defective units at the finishing operation. What is the cost to Chicago of the defective items produced? Explain your answer briefly The cost of 1,400 defective units in the Finishing Department is Because the Finishing Department a bottleneck operation, the cost of a defective unit is because of the of contribution margin Choose from any list or enter any number in the input fields and then continue to the next question. The Chicago 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 $105 and has direct material costs of $65 incurred at the start of the machining operation. Chicago has no other variable costs. Chicago 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 Requirement 1. Chicago is considering using some modern jigs and tools in the finishing operation that would increase annual finishing output by 1,550 units. The annual cost of these jigs and tools is $30,000. Should Chicago acquire these tools? Show your calculations. Select the formula, then enter the amounts to calculate the change in throughput contribution. Change in throughput contribution Should Chicago acquire these tools? The the incremental costs by in throughput contribution margin is implement the new design. Therefore, Chicago Requirement 2. The production manager of th 12,000 units and would cost $40,000 per year. al capacity of the Machining Department by Data Table implement the change to increase production. Requirement 3. An outside contractor offers to Chicago accept the subcontractor's offer? Shop Machining 140,000 units Finishing 120,000 units bo to do the finishing in-house. Should 120,000 units Select the formula you will use to calculate the Annual capacity Annual production Fixed operating costs (excluding direct materials) Fixed operating costs per unit produced ($1,200,000 = 120,000; $720,000 = 120,000) 120,000 units $1,200,000 in throughput contribution $720,000 $10 per unit $6 per unit Print Done Chicago contract with an in throughput contribution is incremental costs by Requirement 4. The Henry Corporation offers to machine 6,000 units at $5 per unit, half the $10 per unit that offer? Show your calculations. costs Chicago to do the machining in-house. Should Chicago accept Henry's Operating costs in the Machining Department of $1,200,000, or $10 per unit, are costs. Chicago save any of these costs by subcontracting machining 6,000 units to Henry. Total costs will be greater by Chicago accept Henry's order Requirement 5. Chicago produces 1,400 defective units at the machining operation. What is the cost to Chicago of the defective items produced? Explain your answer briefly The cost of 1,400 defective units at the machining operation is Requirement 5. Chicago produces 1,400 defective units at the machining operation. What is the cost to Chicago of the defective items produced? Explain your answer briefly. The cost of 1,400 defective units at the machining operation is Because the Machining Department has a capacity of 140,000 units, it production to the Finishing Department. Therefore, there Machining Department. produce and transfer the annual opportunity cost of producing defective units in the Requirement 6. Chicago produces 1,400 defective units at the finishing operation. What is the cost to Chicago of the defective items produced? Explain your answer briefly The cost of 1,400 defective units in the Finishing Department is Because the Finishing Department a bottleneck operation, the cost of a defective unit is because of the of contribution margin Choose from any list or enter any number in the input fields and then continue to the next