The owner of Personal Shirts, Inc., a T-shirt printing company, is planning direct labor needs for the upcoming year. The owner has provided you with the following information for next year€™s plans:

Each color on the T-shirt must be printed one at a time. Thus, for example, a four-color T-shirt will need to be run through the silk screen operation four separate times.
The total production volume last year was 2,000 T-shirts, as shown below.

As you can see, the four-color T-shirt is a new product offering for the upcoming year. The owner believes that the expected 1,000-unit increase in volume from last year means that direct labor expenses should increase by 50% (1,000/2,000). What do youthink?

Transcribed Image Text:

Three Color Colo Colo Total 900 One Two Four Number of T-shirts 300 800 1,000 3,000 One Two Three olr Color CToal Number of T-shirts 300 800 900 2,000