Evaluate a plan designed to cut costs

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Q. An internal study at Mimeo (mfg of low end photo copiers), revealed that much of its workers assembles 3 copiers per hour and is paid $3 for each assembled. There is no supervisor, but re is a quality control rep who verifies quality of each copier before worker is paid. Your supervisor wants you to evaluate a plan designed to cut costs. Under plan, workers would be paid a fixed rate of $8/hour. Would you favour plan? Explain.

Reference no: EM1369025

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