Use the Following Information to Answer Questions 5-9 Alexandria Manufacturing, Inc., is considering reorganizing its plant into manufacturing cells. The following estimates have been prepared to evaluate the benefits from the reorganization: Before the Change After the Change Total annual sales $250,000 $375,000 Costs as percentage of sales: Direct materials 20% 17% Direct labor 8% 7% 12% 6% Manufacturing Support costs Work-in-process inventory $50,000 $ 40,000 Inventory carrying costs are estimated to be 11% per year. As a result of the layout reorganization, reduced levels of work-in-process inventory are projected to decrease inventory carrying costs annually by: Select one: O a. $1,100. on O b. $3,750 O c. $4,400. O d. $5,500 As a result of the layout reorganization, incremental manufacturing costs are projected to: of estion Select one: O a decrease by $11,400 annually. O b. decrease by $12,500 annually. c. increase by $12,500 annually. O d. increase by $20,000 annually. Clear my choice 7 Prin tatabase i Success As a result of switching to a cellular manufacturing operation, total benefits are projected to increase annually by: Select one: O a. $111,400 O b. $113,600. O c. $136,400. O d. $138,600. After the change, sales are projected to increase because: Select one: O a. of shorter delivery lead times. O b. of higher sales prices. O c. of the ability to process larger batch sizes. O d. All of the above are correct. After the change, work-in-process inventory carrying costs are projected to decrease because of: Select one: O a. reduced costs in materials handling. O b. lower financing costs. c. the decreased need for inventory storage. O d. All of the above are correct. age Next page 53-42-63 Privacy Policy Terms of Use RI CD