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The Cost of Improving the Office Layout Is $27,000 to Be

Question 108

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The cost of improving the office layout is $27,000 to be treated as a one-time expense.The office manager does not have any way of estimating improved profits resulting from quality changes but says that the new layout will save time and miles of walking for the 40 office employees.She estimates that the new layout will cut the amount of walking for the average employee by 100 miles per year.How much will the layout improvement be worth?

Correct Answer:

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First: 40 employees × 100 miles = 4,000 ...

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