Faced with rising pressure for a $13 per hour minimum wage rate, the farming Whi

Question

Faced with rising pressure for a $13 per hour minimum wage rate, the farming While the Field Friend itself may be in workable condtion for up to five years, industry is currently exploring the possible use of robotics to replace some farmassume that the farm would view its implementation as a one-year experiment workers. The Field Friend is one such robot, its job is to thin out a feld of lettuce, removing the least promising buds of lettuce. By removing these weaker plants, Requirement the stronger lethsuce plants have more room to grow. Assume the following facts: Perfom a cost-benefit analysis for the first year of implementation to determine st ICick the loon to view the information ) whether the Field Friend would be a financially viable investment i the minimum wage is raised to $13 per hour. (Round your answers to the nearest whole dollar.) Cost and Benefit Information 1. One Field Friend would do the work of 25 farm workers 2. Each farm worker typically works 60 hours on the lettuce thinning process each year 3. Each farm worker would earn $13 per hour plus 7 65% payroll tax. 4. The Field Friend is estimated to cost $10,000 plus $650 for delivery 5. Annual costs of operating the Field Friend are expected to be $1,800 1 of Print Done

Explanation / Answer

Cost-Benefit Analysis (Amounts in $)

Expected Benefits (Cost Savings): Saving in labor cost (25 workers*60 hrs*$13 per hour) 19,500 Saving in Payroll taxes ($19,500*7.65%) 1,492 Total expected benefits ($19,500+$1,492) (A) 20,992 Expected Costs: Cost of Field Friend 10,000 Delivery cost 650 Annual operating cost 1,800 Total expected costs (B) 12,450 Net expected benefit (cost) (A-B) 8,542

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.