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The Raleigh Corporation manufactures filing cabinets in two operations: machining and finishing. It provides the following information: (Click the icon to view the department information.)
The Raleigh Corporation manufactures filing cabinets in two operations: machining and finishing. It provides the following information: (Click the icon to view the department information.) preceding data. There is no connection between the requirements. Read the these tools? Show your calculations. Producing 1,350 more units will generate contribution (throughput) margin and operating income because Requirements 1. Raleigh is considering using some modern jigs and tools in the finishing Data table operation that would increase annual finishing output by 1,350 units. The annual cost of these jigs and tools is $30,000. Should Raleigh 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 10,000 units and would cost $34,000 per year. Should Raleigh implement the change? Show your calculations. 3. An outside contractor offers to do the finishing operation for 11,000 units at $4 per unit, double the $2 per unit that it costs Raleigh to do the finishing in-house. Should Raleigh accept the subcontractor's offer? Show your calculations. 4. The Hasting Corporation offers to machine 7,000 units at $2 per unit, half the $4 per unit that it costs Raleigh to do the machining in-house. Should Raleigh accept Hasting's offer? Show your calculations. 5. Raleigh produces 1,200 defective units at the machining operation. What is the cost to Raleigh of the defective items produced? Explain your answer briefly. 6. Raleigh produces 1,200 defective units at the finishing operation. What is the cost to Raleigh of the defective items produced? Explain your answer briefly
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