Lander Metals Inc A) Do Not Change the Production Floor

question 145

Multiple Choice

Lander Metals Inc.manufactures automobile spare parts for car manufacturers.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? $\begin{array}{lrr}&\text { Current }&\text { Proposed }\\\text { Required machine operators } & 16 & 12 \\\text { Materials-handling workers } & 3.00 & 3.00 \\\text { Employee average pay } & \$ 15 \text { per hour } & \$ 18 \text { per hour } \\\text { Hours Worked per employee } & 3,400 & 3,150\end{array}$

• A) Do not change the production floor.
• B) Rearrange the production floor.
• C) Either, because it makes no difference to the employees.
• D) It doesn't matter because the costs incurred will remain the same.

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