Year 10At the Moslund Plant, the assembly line consists of 3 conveyor belts. In addition, there are 3 inspection posts, one at the end of each conveyor belt. In Year 10 (Y10), 15 workers were employed directly on the line; 3 of these workers staffed the inspection posts, one at each post. In Y10, the Moslund Plant assembly line had an output of 250,000 units and generated a profit of $15,000,000.
Year 11For Year 11 (Y11), the Moslund Plant assembly line was modernized as follows:- Conveyor-belt speeds were increased by a fixed percentage.
- The assembly line’s administrative unit was restructured to maximize efficiency.
- Each inspection post was automated, and the 3workers who formerly staffed the posts were laid off and were not replaced.
- There were no other personnel changes on the assembly line for Y11.
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Which one of the following statements is supported by the information provided about the assembly line and the assembly-line modernization plan at the Moslund Plant?A. On the assembly line, conveyor-beit speed is directly proportional to total annual output of assembled units.
B. Administrative unit restructuring accounted for the greatest increase in the dollar amount of profit from Y10 to Y11.
C. Conveyor-belt speed increase accounted for the greatest increase in the dollar amount of profit from Y10 to Y11.
D. Conveyor-belt speed increase accounted for the greatest increase in annual output of assembled units from Y10 to Y11.
E. Inspection-post automation accounted for the greatest increase in annual output of assembled units from Y10 to Y11.
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