Problem

Identifying and managing unused capacity (continuation of 12-26). Refer to Exercise...

Identifying and managing unused capacity (continuation of 12-26). Refer to Exercise 12-26.

1. Calculate the amount and cost of unused software-implementation support capacity at the beginning

of 2013, based on the number of jobs actually done in 2013.

2. Suppose Southland can add or reduce its software-implementation support capacity in increments

of 10 units. What is the maximum amount of costs that Southland could save in 2013 by downsizing

software-implementation support capacity?

3. Southland, in fact, does not eliminate any of its unused software-implementation support capacity.

Why might Southland not downsize?

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Solutions For Problems in Chapter 12