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Using the Original Design,a Machine Requires 12 Hours of Setup

Question 67

Multiple Choice

Using the original design,a machine requires 12 hours of setup time.By redesigning the machine,the setup time is reduced by 25 percent.The cost per setup hour is $225.Calculate the reduction in nonvalue-added cost per setup.


A) $675 per setup
B) $225 per setup
C) $450 per setup
D) $800 per setup
E) $2,025

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