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CASE 7 oua/Support Corperation manufactures seats for automobies, vans, trucks, and vanous recreational vehicles. The company has a number of piants around the world, ncluding the Demver Cover Plant which makes seat covers Ted Vosio is the piant manager of the Denver Caver Plam but aso serves as the regional productian mansger for the company His budget as the regional manager is charged to the Denver Cover Piant. Vosio has just heard thet Qua Support has received a bid trom an outside vendor bo supply the equvalnt of the entire annual output of the Denver Cover Plant for $35 milion Vosilo was astonished at re low outside bid because the budget for the Denver Cover Plants operating costs for the upcoming year was set at $52 mlion it this bid s accepted, the Denver Cover Piant will be closed dawn The budget for Denver Cover's oceraing costs for the coming year s presented telow Denver Cover Plant Aual Budget for Operating Costs 514,000,000 Labor 13,100.000 Drect Supervision Indrect plant 4,000,000 18000,000 3,200,000 7 000.000 5,000,000 Overhead Depreciason-equpment Deprecistion-bulding Plant manager and staff Corporate expenses 800,000 4.000,000 20000.000 $52,000,000 Totail budoeted costs Ficed corporate cxpenses allocabed so plants and other oporwtng urits based on totel budgeted wago and salaty costs. Adcitional facts regarding the plant's operations are as folows a Due to Denver Cover's commiment 1o use high-quality fabrics in all of ts products, the Purchasing Department was instructed to place blanket purchase arders with major suppliers to ensure the receo of sufficient materisis for the coming year. if these orders are candeled as a consequence of the plant closing, termination charges would amount to 20 % of the cost of drect maenas b. Approximately 400 piant employees will lose their jobs if the plart s closed This includes al of the direct laborers and supervisors as well as the plumbers, electridians, and other skiled workers classified as indrect plant workers Some would be able to find new obs whie many others would have difficuty Al employees would have difficuty matching Denver Cover's base pay of 318 80 per hour, which is the highest in the area. A clause in Denver Cover's contract with the union may help some employees, the company must provide employment assistance to its tormer employees for CASE 7 oua/Support Corperation manufactures seats for automobies, vans, trucks, and vanous recreational vehicles. The company has a number of piants around the world, ncluding the Demver Cover Plant which makes seat covers Ted Vosio is the piant manager of the Denver Caver Plam but aso serves as the regional productian mansger for the company His budget as the regional manager is charged to the Denver Cover Piant. Vosio has just heard thet Qua Support has received a bid trom an outside vendor bo supply the equvalnt of the entire annual output of the Denver Cover Plant for $35 milion Vosilo was astonished at re low outside bid because the budget for the Denver Cover Plants operating costs for the upcoming year was set at $52 mlion it this bid s accepted, the Denver Cover Piant will be closed dawn The budget for Denver Cover's oceraing costs for the coming year s presented telow Denver Cover Plant Aual Budget for Operating Costs 514,000,000 Labor 13,100.000 Drect Supervision Indrect plant 4,000,000 18000,000 3,200,000 7 000.000 5,000,000 Overhead Depreciason-equpment Deprecistion-bulding Plant manager and staff Corporate expenses 800,000 4.000,000 20000.000 $52,000,000 Totail budoeted costs Ficed corporate cxpenses allocabed so plants and other oporwtng urits based on totel budgeted wago and salaty costs. Adcitional facts regarding the plant's operations are as folows a Due to Denver Cover's commiment 1o use high-quality fabrics in all of ts products, the Purchasing Department was instructed to place blanket purchase arders with major suppliers to ensure the receo of sufficient materisis for the coming year. if these orders are candeled as a consequence of the plant closing, termination charges would amount to 20 % of the cost of drect maenas b. Approximately 400 piant employees will lose their jobs if the plart s closed This includes al of the direct laborers and supervisors as well as the plumbers, electridians, and other skiled workers classified as indrect plant workers Some would be able to find new obs whie many others would have difficuty Al employees would have difficuty matching Denver Cover's base pay of 318 80 per hour, which is the highest in the area. A clause in Denver Cover's contract with the union may help some employees, the company must provide employment assistance to its tormer employees for