Question

< Previous Question 5 Next > Which of the following statements about striving to reduce labor costs per pair produced at each of the company's production facilities is true? O The most effective way for a company to achieve labor costs per pair produced that are below the industry average is to give workers large increases in base pay (above 10%) annually and to keep incentive pay below $0.75 per non-defective pair produced. O Companies producing branded footwear with a 7-star or higher S/Q rating are very unlikely to achieve labor costs per pair produced that are below the industry average in a given region whereas companies producing branded footwear with an S/Q rating no higher than 4-stars or less in that same geographic region are virtually assured of having labor costs per pair that are below the region's industry average. Company managers each year should seek to search out a combination of base pay increases, incentive pay per non-defective pair produced, total compensation, and expenditures for best practices training at each production facility that is projected to yield the lowest feasible labor cost per pair produced The easiest way for a company to achieve low labor costs per pair produced is make sure that all of its production facilities are equipped with new footwear-making equipment rather than refurbished equipment. As long as labor productivity at a company's production facility is in the range of 3.400 to 3,600 pairs produced per worker, then labor costs per pair produced at that facility will closely match the labor costs per pair produced of other companies having production facilities in that same region. DLL

Answer 1

Correct answer would be

The company managers each year should seek to search out a combination of base pay increase ,incentive pay per non defective pair produced , total compensation , expenditure for the best practices training at each production facility that is projected to yield the lowest feasible labor cost per pair produce .

As here the company taken the lower labor cost productions facility and implicating the techniques in the other production facility by provide training to the labor . In this process productivity of labor will be higher , so per pair labor cost will be low.