WAGES (with payroll taxes and benefits): Designers Computer Designers (Option 3) Painters Packers Current/Option 1 Option...

 

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WAGES (with payroll taxes and benefits): Designers Computer Designers (Option 3) Painters Packers Current/Option 1 Option 2 Option 3 3. (6) Option 1 Option 2 Option 3 PRODUCTION COSTS: (Calculate the labor costs per shirt: divide Col. I above by Col. 2) Labor: S/hr (Total) Option 1: Option 2: Option 3: $107 $400 $ 80 $15/hr. $20/hr. $12/hr. $10/hr. Total labor cost per hour (wages of all workers for one hour) $107.00 Management Stockholders Labor/shirt (Cost of 1 hr.) (#shirts/hr) S S $ $ 80.00 Materials/shirt $4.00 TOTAL COST OF PRODUCTION PER SHIRT: (Add cost per hour of labor, materials, and other-machines, utilities, etc.) Current workers Community leaders Unemployed people in the community Consumers $4.00 $4.00 #Shirts per hour 10.00 shirts 31.25 shirts 30.00 shirts Other cost/shirt (Machines Utilities) 4. (1) Based on the production costs per shirt, which option would you recommend? 5. (3) How would that decision affect current workers? Would any new people be hired? 6. (2) What might happen to the company in the long run if they choose Option 1 (turning down the large order)? 7. (5) Besides laying off some workers, are there other negative factors related to choosing Option 3? Do the positive factors outweigh any negatives? Why or why not? (Be sure to think about long run impacts as well as immediate impacts.) 8. (6) Which decision do you think would be supported by the following groups? $3.00 $3.00 $8.70 WAGES (with payroll taxes and benefits): Designers Computer Designers (Option 3) Painters Packers Current/Option 1 Option 2 Option 3 3. (6) Option 1 Option 2 Option 3 PRODUCTION COSTS: (Calculate the labor costs per shirt: divide Col. I above by Col. 2) Labor: S/hr (Total) Option 1: Option 2: Option 3: $107 $400 $ 80 $15/hr. $20/hr. $12/hr. $10/hr. Total labor cost per hour (wages of all workers for one hour) $107.00 Management Stockholders Labor/shirt (Cost of 1 hr.) (#shirts/hr) S S $ $ 80.00 Materials/shirt $4.00 TOTAL COST OF PRODUCTION PER SHIRT: (Add cost per hour of labor, materials, and other-machines, utilities, etc.) Current workers Community leaders Unemployed people in the community Consumers $4.00 $4.00 #Shirts per hour 10.00 shirts 31.25 shirts 30.00 shirts Other cost/shirt (Machines Utilities) 4. (1) Based on the production costs per shirt, which option would you recommend? 5. (3) How would that decision affect current workers? Would any new people be hired? 6. (2) What might happen to the company in the long run if they choose Option 1 (turning down the large order)? 7. (5) Besides laying off some workers, are there other negative factors related to choosing Option 3? Do the positive factors outweigh any negatives? Why or why not? (Be sure to think about long run impacts as well as immediate impacts.) 8. (6) Which decision do you think would be supported by the following groups? $3.00 $3.00 $8.70

Answer rating: 100% (QA)

Option 1 Total labor cost per shirt 10700 1000 shirts 1070 per shirt Other costs per shirt 300 per shirt Total cost of production per shirt 1070 300 1370 per shirt Option 2 Total labor cost per shirt ... View the full answer