Number 1

As an analyst at Delta Air Lines, you are asked to help the operations staft. Operations has identified a new method of loading boggage that is expected to result in a 30 percent reduction in labor time but no changes in any other costs. The current labor cost to load bags is $2 per bag. Other costs are $1 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 sovings per bag using it? b. How would managoment use the information in requirement (a) and any other appropriate information to proceed with the contemplated use of the new bagrage loading method? Complete this question by entering your answers in the tabs below. What differential costs should the operations staff consider for the decivion to use the new method next year? 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. 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 lasding method? Differential costs would not play a signficant role in managements decision Management would use the informstion, but would also want to know the effect on quatly. Managenent would make their decision basod strictly on the diflerential cots