Mobile Seating Corporation manufactures seats for automobiles, vans, trucks, and boats. The com pany has a number of plants, including the Greenville Cover Plant, which makes seat covers Miriam Restin is the plant manager at the Greenville Cover Plant but also serves as the production manager for the company. Her budget as the regional manager is charged o th Greenville Plant Restin has just heard that Mobile Seating has received a bid from an outside vendor to supply the equivalent of the entire annual output of the Greenville Cover Plant for $21 million. Restin was astonished at the low outside bid because the budget for the Greenville Cover Plant's operating costs for the coming year was set at $24.3 million. If this bid is accepted, the Greenville Cover Plant will be closed down The budget for the Greenville Cover Plant's operating costs for the coming year is presented on the following Additional facts regarding the plant's operations are as follows Due Greenville Cover Plant's commitment to use high-quality fabrics in all of its prod the Purchasing Department was instructed to place blanket purchase orders with major suppliers to ensure the receipt of sufficient materials for the coming year. If these orders are canceled as a consequence of the plant closing, termination charges would amount to 25% of the cost of direct materials b. Approximately 350 employees will lose their jobs if the plan is closed. This includes all of the direct laborers and supervisors, management and staff, and the plumbers, electricians, and other skilled workers classified as indirect plant workers. Some of these workers would hav difficulty finding new jobs. Nearly all the production workers would have difficulty matching Greenville Cover Plant's base pay of $12.50 per hour, which is the highest in the area. A the company clause in Greenville Cover's contract with the union may help some employ must provide employment assistance and job training to its former employees for 12 months a plant closing. estimated cost to administer this servi would be $0.8 million Some employees would probably choose early retirement because Mobile Seating Corpora tion has excellent pension plan. In fact, $0.7 million of the annual pension expense would continue whether the Greenville Cover Plant is open not d. Restin and her regional staff would not be affected by the closing of the Greenville Cover Plant. They would still be responsible for running three other area plants Cover Plant were closed, the company would realize about $2 million sa vage value for the equipment in the plant. If the plant remains no plans any significant investments in new equipment or buildings. The old equipment is adequate for the job and should last indefinitely