Ashley Manufacturing Is Expanding Its Product Line

question 201

Multiple Choice

Ashley Manufacturing is expanding its product line. As a consequence, it will have to hire thirty-five new production workers at an annual cost of $1,050,000, seven new supervisors at a cost of $350,000, and one additional individual in the personnel department at an annual cost of $35,000. The incremental impact on projected cash flows is:

• A)$0.
• B)$385,000.
• C)$1,400,000.
• D)$1,435,000.

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