Flint industries incurs unit costs of $7 ($4 variable and $3 fixed) in making an assembly part for its finished product. a supplier offers to make 16,800 of the assembly part at $5 per unit. if the offer is accepted, flint will save all variable costs but no fixed costs. prepare an analysis showing the total cost saving, if any, flint will realize by buying the part.

Amanufacturing firm is considering overhauling the existing compensation strategy. currently every front line employee who works on the assembly line earns the same hourly wage. ideally, management would like to institute a new pay system that involves pay-for-performance. which of the following recommendations is both consistent with scientific management's general emphases and generally good advice for management of this firma. the firm should adopt a differential pay system with one pay level for average performance, and a higher level for good performance. b. the firm should adopt a differential pay system, but the firm should modify it from its original design and provide many different levels of pay associated with different performance levels. c. the firm should understand worker psychology and to focus on pay as the key motivator. d. all of the abovee. none of the above