Planter Company is considering purchasing a new inventory tracking system. If Sy

Question

Planter Company is considering purchasing a new inventory tracking system. If System A is purchased for $100,200, new equipment must be purchased and new scanners must be ordered that can be used with the new system. The inventory clerk must also be trained at a cost of $10,025. If System B is purchased for $100,200, new equipment and scanners are not required and the clerk could self-train in 3 hours. System A is expected to reduce the clerk's processing time by 1 hour per day. The inventory clerk is paid $10 per hour. Assuming incremental analysis will be used to determine the best alternative, identify the irrelevant information.

a. Reduction in processing time
b. Purchase of new scanners
c. Training clerk
d. Purchase of new equipment

Explanation / Answer

Hi, Answer would be a reduction in processing time since all the other factors would be used to perform incremental analysis. Thanks, Aman

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