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Question 5: 5'n+ustainabilityr and Management Accounting [10 Marks} m Bike Company is thinking of setting up a plant in Chengdu, China. Operating data for Wand
Question 5: 5'n+ustainabilityr and Management Accounting [10 Marks} m Bike Company is thinking of setting up a plant in Chengdu, China. Operating data for Wand Chengdu are asfollows: _..,... Materialperbike Labourt-meperb-ke Labour cost per hour $25.80 $1.10 Waste per bike 15 kilograms 35 kilograms 40' 49 Fixed manufacturing cost $118,000 per 508,000 per annum annum Delivery time F\" days 2? days It the Chengdu plant is opened, them plant will be closed. It them plant is closed the employees will almost certainly be unemployed. There is consternation in the local community about the closure, especially among older employees. The plant appears to havetew airborne pollutants and does not contaminate waterways and sewers. Required: Evaluate the alternatives using economic, environmental, and social impact data and suggestthe company which alternative it should consider. State clearly any assumptions thatyou need to make. {10 marks] Your Answer {expand the space as reguiredl
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