Umberger Manufacturing, Inc., is considering reorganizing its plant into manufacturing cells. The following estimates have been prepared to evaluate the benefits from the reorganization:
Inventory carrying costs are estimated to be 10% per year.
-As a result of switching to a cellular manufacturing operation,total benefits are projected to increase annually by:
A)$216,500.
B)$200,000.
C)$183,500.
D)$176,500.

Question

Umberger Manufacturing, Inc., is considering reorganizing its plant into manufacturing cells. The following estimates have been prepared to evaluate the benefits from the reorganization:  
Inventory carrying costs are estimated to be 10% per year.
-As a result of switching to a cellular manufacturing operation,total benefits are projected to increase annually by:
A)$216,500. 
B)$200,000. 
C)$183,500. 
D)$176,500.

Quizplus · Accepted Answer

C)
 11ea4d6e_7a28_15a4_8592_59b10e5cfc50_TB2862_00