1) Company manufactures circuit boards for other firms. Management is attempting to search for ways to reduce manufacturing labor costs and has received a proposal from a consulting company to rearrange the production floor next year. Using the information below regarding current operations and the new proposal, which of the following decisions should management accept? Currently Required machine operators Employee average pay Hours worked per employee Proposed 7 4 $12 per hour $14 per hour 3,000 3,000 A. Rearrange the production floor, because the difference is 84,000 B. Do not change the production floor. C. Rearrange the production floor, because the difference is 40,000 D. Either, because it makes no difference to the employees
1) Company manufactures circuit boards for other firms. Management is attempting to search for ways to reduce manufacturing labor costs and has received a proposal from a consulting company to rearrange the production floor next year. Using the information below regarding current operations and the new proposal, which of the following decisions should management accept? Currently Required machine operators Employee average pay Hours worked per employee Proposed 7 4 $12 per hour $14 per hour 3,000 3,000 A. Rearrange the production floor, because the difference is 84,000 B. Do not change the production floor. C. Rearrange the production floor, because the difference is 40,000 D. Either, because it makes no difference to the employees
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1) Company manufactures circuit boards for other firms. Management is attempting to search for ways to
reduce manufacturing labor costs and has received a proposal from a consulting company to rearrange the
production floor next year. Using the information below regarding current operations and the new proposal,
which of the following decisions should management accept?
Currently
Required machine operators
Employee average pay
Hours worked per employee
Proposed
7
4
$12 per hour $14 per hour
3,000
3,000
A. Rearrange the production floor, because the difference is 84,000
B. Do not change the production floor.
c. Rearrange the production floor, because the difference is 40,000
D. Either, because it makes no difference to the employees
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