Ruggles Circuit Company manufactures circuit boards for other firms. Management is attempting to search for ways to reduce manufacturing labor costs and has received a proposal from a consulting company to rearrange the production floor next year. Using the information below regarding current operations and the new proposal, which of the following decisions should management accept? Currently Proposed Required machine operators 5 4.5 Materials-handling workers 1.25 1.25 Employee average pay $8 per hour $9 per hour Hours worked per employee 2,100 2,000 A) Do not change the production floor. B) Rearrange the production floor. C) Either, because it makes no difference to the employees. D) It doesn't matter because the costs incurred will remain the same.

I know the answer is B. but can someone explain why?? When I do calculation, the currently is 84000 and Proposed is 72000. I know we will keep Currently, is it right??