Tran-North American Industries Inc. is looking at a change in its manufacturing process that will cause manufacturing cycle time to increase from 250 hours to 425 hours. The increase in the manufacturing time will result in an estimated loss in revenues of $19,000. Carrying costs are estimated at $2.00 per hour and the controller estimates that 44 orders for raw materials are expected for the year. What is the expected change in revenues as a result of the increase in manufacturing cycle time? (Round the final answer to the nearest whole dollar.)
A) $34,400
B) $37,400
C) $19,000
D) $3000

Question

Quizplus · Accepted Answer

(425 * 2.00 * 44) - ((88.00 * 250) - 19,000) = $34,400