Exercise 1-29 (Algo) Cost Data for Managerial Purposes (LO 1-3) As an analyst at Delta Air Lines, you are asked to help the operations staff, Operations has identified a new method of loading baggage that is expected to result in a 20 percent reduction in labor time but no changes in any other costs. The current labor cost to load bags is $4 per bag. Other costs are $3 per bag. Required: a-1. What differential costs should the operations staff consider for the decision to use the new method next year? a-2. What would be the cost savings per bag using it? b. How would management use the information in requirement ( () and any other appropriate information to proceed with the contemplated use of the new baggage loading method? Complete this question by entering your answers in the tabs below. What differential costs should the operations staff consider for the decision to use the new method next year? Exercise 1-29 (Algo) Cost Data for Managerial Purposes (LO 1-3) As an analyst at Delta Air Lines, you are asked to help the operations staff. Operations has identified a new method of loading baggage that is expected to result in a 20 percent reduction in labor time but no changes in any other costs. The current labor cost to load bags is $4 per bag. Other costs are $3 per bag. Required: a-1. What differential costs should the operations staff consider for the decision to use the new method next year? a.2. What would be the cost savings per bag using it? b. How would management use the information in requirement (s) and any other oppropriate information to proceed with the contemplated use of the new baggage loading method? Complete this question by entering your answers in the tabs below. What would be the cost savings per bag using it? Note: Round your answer to 2 decimal places. As an analyst at Delta Air Lines, you are asked to help the operations staff. Operations has identified a new method of loading baggage that is expected to result in a 20 percent reduction in labor time but no changes in any other costs. The current labor cost to load bags is $4 per bag. Other costs are $3 per bag. Required: a-1. What differential costs should the operations staff consider for the decision to use the new method next year? a-2. What would be the cost savings per bag using it? b. How would management use the information in requirement ( ( ) and any other appropriate information to proceed with the contemplated use of the new baggage loading method? Complete this question by entering your answers in the tabs below. How would management use the information in requirement (a) and any other appropriate information to proceed with the contemplated use of the new baggage loading method? Difterental costs would not play a significant role in management's decision. Managenent would use the information, but would also want to know the effect on quality Management would make their dechibn based stricty on the diterential costs
