The Intelligent Glasses Corp. makes smart glasses with augmented reality capabilities, which are now used for remote audits. You are looking for ways to cut costs. The following proposal is received to reconfigure production facilities with automation changes. Use the information below to decide whether to accept or reject the project. Without ChangesWith ChangesMachine operations54.5Materials handling labor hours1.251.25Average salary per employee$8/hr$9/hrLabor hours per employee2,1002,00a. Do not accept proposal since the cost of salaries increases by $1,200b. Accept proposal since the total cost of salaries is reduced by $1,200c. Do not accept proposal since the total cost of salaries increases by $3,000d. Accept proposal since the total cost of salaries is reduced by $3,000

Total salary cost without adjustment = Machine operator without adjustment x Average hourly wage per…

Answered: The Intelligent Glasses Corp. makes…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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The Intelligent Glasses Corp. makes smart glasses with augmented reality capabilities, which are now used for remote audits. You are looking for ways to cut costs. The following proposal is received to reconfigure production facilities with automation changes. Use the information below to decide whether to accept or reject the project.

	Without Changes	With Changes
Machine operations	5	4.5
Materials handling labor hours	1.25	1.25
Average salary per employee	$8/hr	$9/hr
Labor hours per employee	2,100	2,00