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Business, 04.05.2020 22:32 001234567891011

Power Cycle 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 $1,200,000 $1,600,000 Costs as percentage of sales: Direct materials 23% 20% Direct labor 9% 7% Manufacturing Support costs 18% 13% Workminus Minus Process inventory $250,000 $180,000 Inventory carrying costs are estimated to be 10% per year. As a result of the layout reorganization, incremental manufacturing costs are projected to:

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Power Cycle Manufacturing, Inc., is considering reorganizing its plant into manufacturing cells. The...
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