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Mega Motors, Inc. recently announced a new cost cutting program to reduce per
unit costs through a series of innovative approaches. Mega Motors will
streamline the number of unique components in its automobiles as part of its
new program. For example, Mega Motors announced it will share a common
rear view mirror assembly for all of its vehicles, reducing the number of unique
designs from 137 down to one design. Other unique component designs are
similarly streamlined to one or two components, where applicable.
Is it possible, using the approaches covered in MSF 535-01, to compute the
change in value of Mega Motors from the new cost cutting program? Explain
your answer. Keep the answer limited to one page.