ASQ Certified Manager of Quality / Organizational Excellence (CMQ/OE) — Question 23

A company is considering converting a portion of its existing manufacturing space to storage in order to reduce dependence on an external warehouse. The following information reflects the results of a cost-benefit analysis.
Building construction changes$15,000

Reduced transportation$25,000 -
Manufacturing layout changes$36,000
Increased internal storage capacity$48,000
What is the total dollar benefit to be expected when the project is completed?

Answer options

Correct answer: C

Explanation

The total dollar benefit is calculated by adding the reduced transportation ($25,000), increased internal storage capacity ($48,000), and subtracting the building construction changes ($15,000) and manufacturing layout changes ($36,000). This results in a total benefit of $76,000, making option C the correct answer, while the other options are incorrect as they do not reflect this calculation.