Ashley Manufacturing is expanding its product line. As a consequence, it will have to hire thirty-five new production workers at an annual cost of $1,050,000, seven new supervisors at a cost of $350,000, and one additional individual in the personnel department at an annual cost of $35,000. The incremental impact on projected cash flows is:
A)$0.
B)$385,000.
C)$1,400,000.
D)$1,435,000.

Question

Quizplus · Accepted Answer

The incremental impact on projected cash flows is the total additional cost incurred due to the expansion. This includes the cost of new production workers ($1,050,000), new supervisors ($350,000), and the additional personnel department staff ($35,000), totaling $1,435,000.

Ashley Manufacturing Is Expanding Its Product Line