DQ #6 Week 4 ch4 (Due by T. .. 100 points maximum score Grading Rubric Tap for m

Question

DQ #6 Week 4 ch4 (Due by T. .. 100 points maximum score Grading Rubric Tap for more detail An internal study at a manufacturer of low-end photocopiers revealed that each of its workers assembles 3 photocopiers per hour and is paid $6 for each assembled copier. Although the company does not have the recourses needed to supervise the workers, a full-time inspector verifies the quality of each unit produced before a worker is paid for his/her output. Assume that you have been asked by your superior to evaluate a new proposal designed to cut costs. Under this plan, workers would be paid a fixed wage of $16 per hour. Would you recommend this plan to the manufacturer? Substantiate your answer.

Explanation / Answer

I would recommend the new proposal to the manufacturer because under the existing plan the manufacturer would incur a cost of $ 18 per hour per worker for assembling 3 copiers.

With the new proposed plan, the manufacturer would incur a fixed cost of $ 16 per hour and workers already have the capability to assemble 3 copiers per hour and the new proposal does not recommend assembling of additional copier. At the same productivity rate the workers should be able to assemble 3 copiers per hour and the manufacturer would also benefit by saving $ 2 per worker .

Thus the manufacturer should go ahead with the new proposal.

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