Problem:
Identifying and managing unused capacity (continuation of 13-26). Refer to Exercise 13-26.
Required
1. Calculate the amount and cost of unused software-implementation support capacity at the beginning of 2011, based on the number of jobs actually done in 2011.
2. Suppose Westlake can add or reduce its software-implementation support capacity in increments of 15 units. What is the maximum amount of costs that Westlake could save in 2011 by downsizing software-implementation support capacity?
3. Westlake, in fact, does not eliminate any of its unused software-implementation support capacity. Why might Westlake not downsize?