Question

Faced with rising pressure for a $12 per hour minimum wage rate, the farming industry is currently exploring the possble use of While the Lettuce Tech itself may be in workable condition for up to five years, assume that the farm would view its implementation as botics to replace some farm workers. The Lattuce Tech is one such robot; its job is to thin out a field of lettuce, removing the least ao-year axperiment promising buds of lettuce. By removing these weaker plants, the stronger lettuce plants have more room to grow. Assume the following acts Cick the icon to view the information) Perform a cost-benefit analysis for the first year of implementation to determine whether the Lettuce Tech would be a financially viable investment if the mirnimum wage is raised to 512 per hour. (Round your arewers to the nearest whole dallar.) Cost Benefit Analysis Expected Benefits (Cost Savings): Total expacted banefits Expected Costs: Total axpected costs Net expected benefit (cost)

Answer 1

Solution:

Cost benefit Analysis
Particulars		Amount
Expected benefits (Cost savings):
Saving in farm worker cost (25*30*$12)	$9,000
Saving in payroll taxes ($9,000*7.65%)	$689
Total expected benefits		$9,689
Expected costs:
Cost of Lettuce tech	$6,000
Delivery charge of lettuce tech	$900
Annual operating cost of lettuce tech	$1,000
Tota expected costs		$7,900
Net expected benefit (Cost)		$1,789