Question: Exercise 1-29 (Static) Cost Data for Managerial Purposes (LO 1-3) s an analyst at Delta Air Lines, you are asked to help the operations staff,
Exercise 1-29 (Static) Cost Data for Managerial Purposes (LO 1-3) s an analyst at Delta Air Lines, you are asked to help the operations staff, Operations has identified a new method of loading baggage that is expected to >sult in a 30 percent reduction in labor time but no changes in any other costs. The urrent labor cost to load bags is $2 per bag. Other costs are $1 per bag. equired: -1. What differential costs should the operations staff consider for the decision to se the new method next year? -2. What would be the cost savings per bag using it? . How would management use the information in requirement (a) and any othe ppropriate information to proceed with the contemplated use of the new baggage Jading method? Complete this question by entering your answers in the tabs below. Req A1 Reg A2 Req B What would be the cost savings per bag using it? (Round your answer to 2 decimal plac Dost savings per bag 1.00
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