A process is replicated in another country where wages are 50 percent lower. Staffing and processing times

Question:

A process is replicated in another country where wages are 50 percent lower. Staffing and processing times are identical. What would be the effect on the costs of direct labor?

a. Costs of direct labor would be 50 percent lower.

b. Costs of direct labor would be the same.

c. Costs of direct labor would be 50 percent higher.

d. Cannot determine from the given information.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Operations Management

ISBN: 9781260547610

2nd International Edition

Authors: Gerard Cachon, Christian Terwiesch

See More Books

Question Posted: Jul 23, 2020 08:23 AM

See More Questions

In Problem 42: a. How much processing time will be left unused at the optimal solution? b. What would be the effect on the optimal solution of increasing the available storage space from 50 to 60...
Country A and Country B have identical population growth rates of 1 percent per annum, and everyone in each country always works 40 hours per week. Labor productivity grows at a rate of 2 percent in...
In Problem 50, if the amount of fertilizer required for each acre of strawberries were determined to be 20 tons instead of 8 tons, what would be the effect on the optimal solution?
You want to conduct a study on commuters in NYC and how muchtime they spend traveling to and from work every day. You decide towait outside the subway stations from Monday to Friday, 9am to 5pm,and...
Sketch the shape and orientation of the following types of orbitals: (a) s, (b) pz (c) dxy
Calculate NPV, present value ratio, and payback LaRussa Company is consider ing the investment of $280,000 in a new machine. It is estimated that the new machine will generate additional cash flow of...
You are required to prepare a contract account for the year ending 31 December 1989 from the following particulars: Rs Materials 4,00,000 Wages 5,00,000 Expenses 1,00,000 Expenses occurred due 20,000...
Suppose that Bigco is currently trading for $100 per share. We know that in one year Bigco stock will sell for either $150 per share (good day) or for $75 per share (bad day). No other prices are...
On February 1, 2021, Cromley Motor Products issued 6% bonds, dated February 1, with a face amount of $55 million. The bonds mature on January 31, 2025 (4 years). The market yield for bonds of similar...
Two towns, each with three members, are deciding whether to put on a fireworks display to celebrate the New Year. Fireworks cost $360. In each town, some people enjoy fireworks more than others. a....
Imagine you could take a tour of the Tesla plant. To prepare for this tour, draw a simple process flow diagram of the operation. What is the cycle time of the process (assume two shifts of 8 hours...
You and three of your friends run a car wash for a fund-raiser. Between interior and exterior cleaning, you spend about 40 minutes per vehicle. You are so successful that the next day you invite four...
Refer to Exercise 3.52. The values of the DJIA on the first day of trading in 2005, 2006, and 2007 were 10,729.43, 10,847.41, and 12,474.52. a Calculate the geometric mean rate of return for the DJIA...
The following information about the payroll for the week ended December 30 was obtained from the records of Saine Co.: Salaries: Sales salaries Deductions: $180,000 Income tax withheld $65,296...
You have just been hired as the chief executive officer (CEO) in a medium-sized organization. The organization is not suffering financially, but neither is it doing as well as it could do. This is...
The following is the selling price and cost information about three joint products: X Y Z Anticipated production 1 2 , 0 0 0 lbs . 8 , 0 0 0 lbs . 7 , 0 0 0 lbs . Selling price / lb . at split - off...
calculate the maximum bending compressive stress of the following section under NEGATIVE bending moment of 216KN.m. 216mm 416mm 316mm 115mm
Need assistance with the following forms: 1040 Schedule 1 Schedule 2 Schedule C Schedule SE Form 4562 Form 8995 Appendix B, CP B-3 Christian Everland (SS number 412-34-5670) is single and resides at...
a) What is a population? b) What is a sample?
Anna, a high school counselor, devised a program that integrates classroom learning with vocational training to help adolescents at risk for school dropouts stay in school and transition to work...
An employee in a restaurant spends his time on the following: waiting for a customer order, taking the order, forwarding the order to the kitchen, waiting for the kitchen to confirm the order,...
Vetro Inc. is a glass manufacturer that produces glasses of every shape and type. Recently it signed a contract to supply round glasses to Switch, a Swiss watch manufacturer. The specifications...
Vetro Inc. is a glass manufacturer that produces glasses of every shape and type. Recently it signed a contract to supply round glasses to Switch, a Swiss watch manufacturer. The specifications...
Ted and his partners have contracted to purchase the franchise nights worth 561 000 to open and operate a specialty pizza restaurant called Popper with a renewable agrement, the partners have agreed...
Your answer is partially correct. Martin Company's chief financial officer feels that it is important to have data for the entire quarter especially since their financial forecasts indicate some...
Kellog Corporation is considering a capital budgeting project that would have a useful life of 4 years and would love testing 5156.000 in equipment that would have zeto salvage value at the end of...

A process is replicated in another country where wages are 50 percent lower. Staffing and processing times

Question:

Step by Step Answer:

a Costs o...View the full answer

Operations Management

Students also viewed these Business questions