A plant produces 75 different electronic products. Each product requires an average of six components that are purchased externally. By redesigning the products, it is possible to produce the 75 products so that they all have three components in common. This will reduce the demand for purchasing, receiving, and paying bills. Estimated savings from the reduced demand are $1,200,000 per year Calculate the nonvalue-added cost of purchasing, receiving and paying bills.
A) $1,200,000
B) $1,000,000
C) $900,000
D) $600,000
A
You might also like to view...
Which of the following statements is true of a target market?
A. Uncontrollable elements continually evolve and create changes in a target market. B. Managers can control the external environment that molds and reshapes a target market. C. Environmental scanning is performed by firms in order to prevent changes in a target market. D. Unlike uncontrollable variables, controllable variables do not affect a target market.
________ is the belief that exerting a high level of effort will result in the successful performance of some task.
A. Equity B. Valence C. Psychological empowerment D. Expectancy E. Instrumentality
Walmart discovered that it could compete on price and build a sustainable business.
Answer the following statement true (T) or false (F)
Horizontal agreements to limit sales by territory or customer are always illegal according to the Supreme Court.
Answer the following statement true (T) or false (F)