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This does not make sense at all. I don't understand why $121,500 is wrong. And this is my last attempt. Thanks to help! Homework: Homework
This does not make sense at all. I don't understand why $121,500 is wrong. And this is my last attempt. Thanks to help!
Homework: Homework #4 Save Score 1.78 of 2 pts HW Score: 97.81%, 9.78 of 10 pts 2 of 6 (6 complete P7-33 (similar to) Question Help To facilitate a move toward JIT production, ABC Company is considering a change in its plant layout. The plant controller, Anita Bliss, has been asked to evaluate the costs and benefits of the change in plant layout. After meeting with production and marketing managers, Anita has compiled the following estimates: Click the icon to view the estimates Requirement Should ABC implement the proposed change in plant layout? Support your answer. Complete the following analysis of the cost and benefits of the proposed change in plant layout. Consider only one year's costs and benefits. Use a parentheses or minus sign to show a net cost. Leave unused cells blank Relevant amount Item Benefits: More Info 115,500 Increase in contribution margin Decrease in inventory costs 6,000 Machine moving and reinstallation will cost $120,000. Total sales will increase by 30% to $1,430,000 because of a decrease in 21,500 production cycle time required under the new plant layout. Average Costs contribution margin is 35% of sales. Inventory-related costs will decrease by 20%. Currently, the annual average carrying value of inventory is $300,000. The annual inventory financing cost is 10% 20,000 Machine moving and reinstallation costs rint Done Net benefits/(costs) 1,500 Choose from any list or enter any number in the input fields and then click Check Answer. 1 part remaining Clear A Final CheckStep by Step Solution
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