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What is the potential savings to sky high pie per year

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Reference no: EM132507226

An activity analysis at Sky High Pie Company found the following activities for its pie makers: 25 percent of time, adding ingredients; 50 percent of time, mixing and kneading pie dough; 7 percent of time, shaping into pans; and 18 percent of time, cleaning up. The total salary and benefits cost pool for pie makers is $850,000 per year. Sky High Pie is considering buying new equipment that would reduce the time required to mix and knead by 50 percent.

Question a. What is the potential savings to Sky High Pie per year if it acquires the new equipment?

Question b. Besides customer defined value-added changes, Sky High Pie should consider the impact of the new mixing machines on the quality of their product. Is this statement true or false?

Reference no: EM132507226

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