The manager knew that her labo u r cost per hour had increased from an average of $ 12 per hour (in quarter 1 ) to an average of $14 per hour (in

The manager

knew that

her

labo

u

r cost per hour had increased from an average of $

12

per hour

(in quarter 1

)

to an average of $14 per hour

(in

quarter 2

)

, primarily due to a move by management to become more

competitive with a new company that had just opened a plant in the area.

She

also knew that

her

average cost

per

kilogram

of raw material had increased from $3

.

20

(in

quarter 1

)

to $3

.

60

(in

quarter 2

)

.

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