Robert Metals Inc. manufactures automobile spare parts for car manufacturers. Management is attempting to search for ways to reduce manufacturing labor costs and has received a proposal from a consulting company to rearrange the production floor next year. Required machine operators Employee average pay Hours worked per employee Current Proposed 16 12 $15 per hour $18 per hour 3,400 3,150 Using the above information regarding current operations and the new proposal, what would the amount of change in operating costs if Robert rearrange the production floor? Example of Answer: +4000 or -4000 Indicated the change type increase (+) or decrease (-) No comma, space, decimal point, or $ sign. Question 48 Barry's Pharmacy has purchased a small auto for delivery of prescriptions. The auto cost $14,000 and will be usable for about seven years. Delivery of prescriptions (which the pharmacy has never done before) should increase revenues by at least $12,500 per year. The cost of these prescriptions will be about $9,000 per year. The pharmacy depreciates all assets by the straight-line method. (Ignore income taxes in this problem.) Compute the payback period on the new auto. Example of Answer: 43.0 or 43.1 One decimal points. No comma, space, or $ sign.