no excess making a component part in a factory with 4. The opportunity cost of capacity is the: a. Variable manufacturing cost of the component. Fixed manufacturing cost of the component. b. Cost of the production given up in order to manufacture the com c. d. Net benefit forgone from the next best alternative use of the capaponent. lanterns that are carried in inventory S. The Lantern Corporation has 1,000 obsolete lanterns that are carried at a manufacturing cost of $20,000. If the lanterns are re-machined inventory they could be sold for $9,000. Altermatively, the lanterns could be s relevant for $1,000. Which alternative is more desirable and what are thor scrap costs for the alternative? a. Re-machine; $5,000. b. Re-machine; $25,000. c. Scrap; $20,000. d. Scrap; S19,000. 6. Ruggles Circuit Company manufactures circuit boards Management is attempting to search for ways to reduce manufacturing co has received a proposal from a consulting company to rearrange the floor nest year. new proposal, which of the following decisions should management accept? for other firms. sts and production Using the information below regarding current operations and the Currently Proposed Required Machine Operators Materials Handling Workers 4.5 1.25 $8 Per Hour 2,100 1.25 $9 Per Hour Employee Average Pay Do not rearrange the production floor. Either, because it makes no difference to the employees. Hours Worked Per Employee 2,000 Rearrange the production floor. It doesn't matter because the costs incurred will remain the same