Lided to propose some improvements that will affect and change their cost per category, as ow. However, they have agreed that they will only adopt these changes if their productivity Creases by 5%. Should they pursue the proposed improvements? Current Proposed Units Produced Labor Cost Raw Material Cost P P 5,000 3,300.00 250.00 P Р 5,000 2,000.00 200.00
Lided to propose some improvements that will affect and change their cost per category, as ow. However, they have agreed that they will only adopt these changes if their productivity Creases by 5%. Should they pursue the proposed improvements? Current Proposed Units Produced Labor Cost Raw Material Cost P P 5,000 3,300.00 250.00 P Р 5,000 2,000.00 200.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![BOL manufactures Basketball balls in Metro Manila. With recent increases in their costs, they have
decided to propose some improvements that will affect and change their cost per category, as shown
below. However, they have agreed that they will only adopt these changes if their productivity
increases by 5%. Should they pursue the proposed improvements?
Current
Proposed
Units Produced
5,000
Labor Cost
P 2,000.00
Raw Material Cost
P
200.00
Capital Expenditure
P 11,000.00
Energy Costs
P 5,000.00
O NO. Productivity will not reach 5%
O YES. Productivity is just slightly above 5%
O NO. Productivity will decrease
O NO. There is no change in productivity
5,000
P
3,300.00
P
250.00
P 10,000.00
P 8,750.00
Next](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F41007574-5122-4aca-b6f8-672ae2b07668%2F274c2075-6f8c-4e35-8684-45c7b584bc4f%2Fg1bs413_processed.jpeg&w=3840&q=75)
Transcribed Image Text:BOL manufactures Basketball balls in Metro Manila. With recent increases in their costs, they have
decided to propose some improvements that will affect and change their cost per category, as shown
below. However, they have agreed that they will only adopt these changes if their productivity
increases by 5%. Should they pursue the proposed improvements?
Current
Proposed
Units Produced
5,000
Labor Cost
P 2,000.00
Raw Material Cost
P
200.00
Capital Expenditure
P 11,000.00
Energy Costs
P 5,000.00
O NO. Productivity will not reach 5%
O YES. Productivity is just slightly above 5%
O NO. Productivity will decrease
O NO. There is no change in productivity
5,000
P
3,300.00
P
250.00
P 10,000.00
P 8,750.00
Next
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