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As a result of the layout reorganization, what amount of annual change is projected

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Coral Gables Electronics is considering reorganizing its plant into manufacturing cells. The company has the following information;Before the change After the change;Total annual sales $872,491 $1,036,902;Costs as percentage of sales;Direct materials 11.09% 9.36%;Direct labor 5.68% 5.41%;Manufacturing support costs 9.12% 8.47%;Work-in-process inventory $305,974 $264,948;Inventory carrying costs are estimated to be 12.39% per year.;As a result of the layout reorganization, what amount of annual change is projected;1. from carrying reduced levels of work-in-process inventory? Answer;2. for incremental manufacturing costs? Answer;3. in total benefits? Answer

 

Paper#25721 | Written in 18-Jul-2015

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