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StormLrd StormLrd
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6 years ago
The Gameshop manufactures specialized board games. Management is attempting to search for ways to reduce costs and is considering two alternatives for an upcoming project of special games that must be delivered to the customer in 12 months' time. Management agreed to the special project job as they have an idle plant that is scheduled for demolition 18 months from now, and either alternative will easily meet the delivery deadline.

Alternative 1 requires 10 machine operators and 2.5 individuals to handle direct materials. Employee pay averages $17.50 per hour and will increase to $18.50 at the mid-point (July 1) of next year. Each employee currently works 2,500 hours but will decrease to 2,400 hours if Alternative 2 is implemented. The second proposal only requires 8.5 workers.
Which of the following items of information are relevant to this decision?
A) property taxes for the idle plant
B) hourly wage rates
C) the timing of the wage increase
D) the number of employees required in each alternative
E) the delivery deadline
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
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AllopaAllopa
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6 years ago
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StormLrd Author
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6 years ago
This calls for a celebration Person Raising Both Hands in Celebration
Marcie D
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Yesterday
Good timing, thanks!
Goku935
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2 hours ago
Smart ... Thanks!
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