The Corporation manufactures filing cabinets in two operations: machining and finishing. It provides the following information: Machining Finishing Annual capacity 190,000 units 165,000 units Annual production 165,000 units 165,000 units Fixed operating costs (excluding direct materials) $2,310,000 $1,815,000 Fixed operating costs per unit produced $14 per unit $11 per unit ($2,310,000/165,000; $1,815,000/165,000) 1. is considering using some modern jigs and tools in the finishing operation that would increase annual finishing output by units. The annual cost of these jigs and tools is . Should acquire these 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 units and would cost per year. Should implement the change? Show your calculations. 3. An outside contractor offers to do the finishing operation for units at $ per unit, the $ per unit that it costs to do the finishing in-house. Should accept the subcontractor's offer? Show your calculations. 4. The Corporation offers to machine units at per unit, half the $ per unit that it costs to do the machining in-house. Should accept 's offer? Show your calculations. 5. produces defective units at the machining operation. What is the cost to of the defective items produced? Explain your answer briefly. 6. produces defective units at the finishing operation. What is the cost to of the defective items produced? Explain your answer briefly.