Gosford	Dalat
Materials per mattress	$220	$164
Labour time per mattress	90 minutes	200 minutes
Labour cost per hour	$60	$10
Waste per mattress	40 kilograms	80 kilograms
Effective working weeks per annum per employee	76	96
Fixed manufacturing overhead	$300,000 per annum	$120,000 per annum
Delivery time	16 days	58 days

1. Gosford Mattress company is thinking of setting up a factory in Dalat, Vietnam. Operating data for Gosford and Dalat are as follows.

If the Dalat plant is opened, the Gosford plant will be closed. If the Gosford plant is closed the employees will almost certainly be unemployed. The plant appears to have few airborne pollutants and does not contaminate waterways and sewers.

Required:

1. Rank the alternatives using only environmental and social impact data.
2. Identify any impacts that this decision may have on the broader economy.
3. Write a recommendation to the board outlining the issues it should consider when making this decision.