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The manager at the Screen Saver Manufacturing manufactures screen savers. The manager continues to ...

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The manager at the Screen Saver Manufacturing manufactures screen savers. The manager continues to ...

The manager at the Screen Saver Manufacturing manufactures screen savers. The manager continues to find ways to reduce manufacturing costs and the manager received a proposal from Entrepreneurial Consultants to rearrange the production in the upcoming year. The managerial accountant provided the following information:

   Current   Proposed
Total number of workers per year   5    4
Total hourly wage rate, per hour   $12.00   $14.00
Total hours worked, per employee   2,300   2,150

Required
Compute the current and proposed information and decide whether management should accept the proposal. Which of the following decisions should management accept?
A) $138,000; Current
B) $120,400 Proposed
C) $118,000; Current
D) $124,000; Proposed
E) $180,000; Proposed

Textbook

Managerial Accounting: Decision Making and Motivating Performance

Edition: 1^st

Authors: Datar, Rajan

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Managerial Accounting: Decision Making and Motivating Performance
University of Pittsburgh

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skully Author

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7 years ago

You're way better than my teacher, thanks Thumbs Up Sign

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Managerial Accounting: Decision Making and Motivating Performance
University of Pittsburgh

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