The owner of Banner-Tech, a printing company, is planning direct labor needs for the upcoming year. The owner has provided you with the following information for next year's plans:

Each color on the banner must be printed one at a time. Thus, for example, a four-color banner will need to be run through the printing operation four separate times. The total production volume last year was 425 banners, as shown below.

As you can see, the four-color banner is a new product offering for the upcoming year. The owner believes that the expected 425-unit increase in volume from last year means that direct labor expenses should increase by 100% (425/425). What do youthink?

Transcribed Image Text:

Three Color Color Color Colo Total 200 One Two Four Number of banners 100 150 400 850 One Two Three Color Coor Colo Total Number of banners 100 125 200 425