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Business, 22.10.2019 22:00 rah45

Pim industries inc. manufactures electronics components. each unit costs $30 before the final test. the final test rejects, on average, 5% of the 50,000 units manufactured per year. the average rejection rate of the industry is 3%. a consultant has determined that poor lighting is the most likely cause of this high rejection rate. it would cost $100,000 to install adequate lighting in the assembly department, which would be useful for 5 years. with adequate lighting (which will cost an additional $5,000 of operating costs per year), the firm expects to reduce its rejection rate to no higher than the industry average. required 1. should the firm install the lighting? that is, what would be the projected five-year impact on operating profit? (show calculations.) 2. what other considerations might affect this decision? 3. what is the primary role of the management accountant in this decision context?

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Pim industries inc. manufactures electronics components. each unit costs $30 before the final test....

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