equirement $5.$ Explain how you could use the information in requirement $4$ to reduce costs.

Based on this$$ analysis, over$50\%$ of product cost relates to

$$

$$

Producing in small lots will

$$

$$

Management may want to evaluate ways to reduce the smaller components like the

$$

$$

hours of production for plant utilities and administration

level of output of purses and backpacks

number of setups and the cost per setup

to further reduce costs.$$ Finally, management should review the design process for cost savings and examine why it takes so long to produce

$$

$$

backpacks relative to purses.

purses relative to backpacks.