1. Calculate the amount and cost of unused engineering support capacity at the beginning of 2020, based on the number of jobs actually done in 2020. 2. Suppose Hurley can add or reduce its engineering support capacity in increments of 50 jobs. What is the maximum amount of costs that Hurley could save in 2020 by downsizing engineering support capacity? 3. Hurley, in fact, does not eliminate any of its unused engineering support

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 11.2E: Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each...
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Data table
1. Number of jobs billed
2. Selling price per job
3. Engineering labor-hours
4. Cost per engineering labor-hour
5. Engineering support capacity (number of jobs the firm can do)
6. Total cost of engineering support (space rent, equipment, etc.)
7. Engineering support-capacity cost per job
$
$
$
2019
300
3,400 $
26,000
32 $
650
175,500 $
270 $
2020
600
3,000
28,000
33
650
182,000
280
Transcribed Image Text:Data table 1. Number of jobs billed 2. Selling price per job 3. Engineering labor-hours 4. Cost per engineering labor-hour 5. Engineering support capacity (number of jobs the firm can do) 6. Total cost of engineering support (space rent, equipment, etc.) 7. Engineering support-capacity cost per job $ $ $ 2019 300 3,400 $ 26,000 32 $ 650 175,500 $ 270 $ 2020 600 3,000 28,000 33 650 182,000 280
Requirements
1. Calculate the amount and cost of unused engineering support capacity at the
beginning of 2020, based on the number of jobs actually done in 2020.
2. Suppose Hurley can add or reduce its engineering support capacity in
increments of 50 jobs. What is the maximum amount of costs that Hurley
could save in 2020 by downsizing engineering support capacity?
3. Hurley, in fact, does not eliminate any of its unused engineering support
capacity. Why might Hurley not downsize?
I
Transcribed Image Text:Requirements 1. Calculate the amount and cost of unused engineering support capacity at the beginning of 2020, based on the number of jobs actually done in 2020. 2. Suppose Hurley can add or reduce its engineering support capacity in increments of 50 jobs. What is the maximum amount of costs that Hurley could save in 2020 by downsizing engineering support capacity? 3. Hurley, in fact, does not eliminate any of its unused engineering support capacity. Why might Hurley not downsize? I
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