Woolly Socks Company, a large hosiery manufacturer currently located in Newcastle, is investigating the transfer of its manufacturing facilities to Bangladesh. Operating data for the Newcastle and Bangladesh facilities are as follows:

NewcastleBangladesh

Number of pairs of socks manufactured per annum2,000,0002,000,000

Yarn per pair of socks1.250.85

Labour time per pair of socks6 mins12 mins

Labour cost per hour22.000.80

Waste per pairs of socks5 grams20 grams

Effective working weeks per annum per employee4048

Fixed manufacturing cost per annum75,00060,000

Delivery time3 days35 days

If the Bangladesh manufacturing facility is opened, the Newcastle manufacturing facility will be closed. If the Newcastle manufacturing facility is closed, the workers will almost certainly be unemployed long term due to a lack of alternative manufacturing employment in the area. There is a great deal of opposition in the local community, including among local council and business owners, regarding the closure of the Newcastle manufacturing facility. The Newcastle manufacturing facility has been considered by the local community to be an excellent corporate citizen with high levels of social and environmental awareness.

Which of the following social and environmental costs should be considered by Woolly Socks board of directors before deciding whether to relocate manufacturing from Newcastle to Bangladesh?

Select one:

a. Cost of ethically disposing of additional yarn waste in Bangladesh.

b. All of the given answers.

c. Economic impact of the closure of the manufacturing facility on the businesses located within the Newcastle region.

d. Costs of the social dislocation that will occur with a large number of Newcastle manufacturing personnel being retrenched or taking early retirement.

From the following list of costs for a kitchen manufacturer, determine the amount of non-value-added cost.

Moving component parts from warehouse to assembly line1802

Assembling the kitchen cabinets51545

Moving material to the factory floor because of stock-out6079

Assembling the microwave units4051

Reworking faulty handles on doors1114

Testing the reworked handles on doors2966

Select one:

a. 11961

b. 8995

c. 7193

d. 1114

Woolly Socks Company, a large hosiery manufacturer currently located in Newcastle, is investigating the transfer of its manufacturing facilities to Bangladesh. Operating data for the Newcastle and Bangladesh facilities are as follows:

NewcastleBangladesh

Number of pairs of socks manufactured per annum2,000,0002,000,000

Yarn per pair of socks4.81.9

Labour time per pair of socks6 mins12 mins

Labour cost per hour4.62.3

Waste per pairs of socks5 grams20 grams

Effective working weeks per annum per employee4048

Fixed manufacturing cost per annum8520374176

Delivery time3 days35 days

If the Bangladesh manufacturing facility is opened, the Newcastle manufacturing facility will be closed. If the Newcastle manufacturing facility is closed, the workers will almost certainly be unemployed long term due to a lack of alternative manufacturing employment in the area. There is a great deal of opposition in the local community, including among local council and business owners, regarding the closure of the Newcastle manufacturing facility. The Newcastle manufacturing facility has been considered by the local community to be an excellent corporate citizen with high levels of social and environmental awareness.

Using financial data only, the cost of manufacturing socks in Newcastle is:

Select one:

a. 18885203

b. 64885203

c. 10520000

d. 10605203

Richard's Division of Richard and Sons has the following data related to a particular period:

Average invested capital1698197

Imputed interest rate10%

Revenues1090344

Variable costs297155

Fixed cost related solely to the division289466

Calculate the return on sales (rounded) for the period.

Select one:

a. 46%

b. 64%

c. 30%

d. 5%