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ACC - Coral Gables Electronics

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Question;Coral Gables Electronics is considering reorganizing its plant into manufacturing cells. The company has the following information:Before the change After the changeTotal annual sales $872,491 $1,036,902Costs 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 $264,948Inventory carrying costs are estimated to be 12.39% per year.As a result of the layout reorganization, what amount of annual change is projected1. from carrying reduced levels of work-in-process inventory? Answer2. for incremental manufacturing costs? Answer ___3. in total benefits? Answer

 

Paper#40533 | Written in 18-Jul-2015

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