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An activity analysis at the Big Sky Pie bakery resulted in the following time estimates of its pie making staff: Adding Ingredients = 25 percent
An activity analysis at the Big Sky Pie bakery resulted in the following time estimates of its pie making staff: Adding Ingredients = 25 percent of staff time; Mixing and Kneading Pie Dough = 40 percent of staff time; Shaping Dough into Pans = 10 percent of staff time; and Cleaning Up = 25 percent of staff time. The total salary and benefits cost pool for pie making staff is $600,000 per year. The company is considering new equipment that would reduce the time required to mix and knead dough by 30 percent. a. What is the bakery's potential savings per year if it acquires the new equipment? Potential savings
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