Before attempting the exercise, click here to read the Rochester Manufacturing's Process Decision case study.

Why is the production manager at RMC in favor of the proposal?

A$.$ He will be supervising more personnel, making his job easier.

B$.$ His allocated overhead charges will decrease.

C$.$ His scheduling task will be simplified.

D$.$ A low investment in machinery will be required.

Why is the conservative plant manager at RMC in favor of the status quo?

A$.$ The change to fewer employees will complicate his job.

B$.$ Stability assures increased sales.

C$.$ A favorable return on investement is not obvious.

D$.$ A reduced investment in machinery will be required, meaning his overhead allocation is reduced.

Why does the optimistic sales manager at RMC want to move ahead with the proposal?

A$.$ The change to fewer employees with new skills is easy.

B$.$ Transition and startup costs are identified and well defined.

C$.$ Quality issues may manifest themselves during changeover.

D$.$ Improved delivery time $($faster throughput$)$ should improve sales.