East/ Line (Proposed). West Line (Present)

Speed (ft/min). 30 East Line. 10 West Line. No savings

Temperature (F) 270 East. 155 West No savings

Adhesive Applied. .563. East .630 West. No savings

Annual Adhesive Cost. $267,737 East. $299.600 West. $31,863 savings

Machine hours/year. 667 East. 2,000 West. 1,333 savings

Labor ($12.75/hr/crew) $8504. East. $25,500 West. $16,996 savings

Manufacturing Overhead Rate ($ per machine hour). $25. East. $27 West. No savings

Total Overhead absorbed. $16,675. East $54,000 West. $37,325 savings

Release Paper @ .04/Linear Yard - 133.333 linear yards (reuse twice). ($5,333). East. (($5,333) Savings

Net Savings. $80,851

Analyze the proposed cost savings in exhibit 1. What is the most likely "real savings" from using the Release paper approach in to run vinyl finger bandages on the east line versus the west line?