Bausch & Lomb Incorporated and Consolidated Subsidiaries - Page 28

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          functions performed by B&L Ireland (including its contact lens              
          operations) and (2) to assess the relative level of efficiency              
          achieved by the employees in its sunglass assembly operations and           
          to recommend work standards to improve that level of efficiency.            
               B&L Ireland maintained a management accounting system for              
          its sunglass assembly operations that was separate from the                 
          accounting system for its contact lens operations.  The account-            
          ing system for B&L Ireland's sunglass assembly operations was               
          based upon standard cost accounting under which standard costs              
          were established for materials, labor, and overheads, and the               
          actual costs for those items were compared against those standard           
          costs to determine any variances.  B&L Ireland prepared monthly             
          reports based on its accounting system in order to aid it in                
          monitoring its sunglass assembly operations.  B&L Ireland's cost            
          accounting system was indicative of a manufacturing company and             
          not a distribution operation.                                               
               B&L Hong Kong's sunglass assembly operations utilized                  
          between 22 and 31 employees, including the following supervisors            
          and managers who were responsible for its sunglass assembly                 
          operations:  (1) A managing director who had overall respon-                
          sibility for B&L Hong Kong's operations (including operations               
          other than the assembly of sunglasses), (2) a production manager            
          who was responsible for the overall production of sunglasses,               
          including quality control, process improvement, manpower alloca-            





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