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Alexandria Manufacturing, Inc., is considering reorganizing its plant into manufacturing cells. The following estimates have been prepared to evaluate the benefits from the reorganization: Inventory
Alexandria Manufacturing, Inc., is considering reorganizing its plant into manufacturing cells. The following estimates have been prepared to evaluate the benefits from the reorganization: Inventory carrying costs are estimated to be 11% per year. As a result of the layout reorganization, reduced levels of work-in-process inventory are projected to decrease inventory carrying costs annually by: a. $1,100 b. $3,750 c. $4,400 d. $5,500 Clear my choice As a result of the layout reorganization, incremental manufacturing costs are projected to: a. decrease by $11,400 annually b. decrease by $12,500 annually c. increase by $12,500 annually d. increase by $20,000 annually Clear my choice As a result of switching to a cellular manufacturing operation, total benefits are projected to increase annually by: a. $111,400 b. $113,600 c. $136,400 d. $138,600 Clear my choice
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