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Flagler Corporation Takes Eight Hours to Complete the Setup Process

Question 21

Multiple Choice

Flagler Corporation takes eight hours to complete the setup process for a certain electrical component, with the setup cost averaging $150 per hour. If the company's competitor can accomplish the same process in six hours, Flagler's non-value-added cost would be:


A) $0.
B) $150.
C) $300.
D) $900.
E) $1,200.

Correct Answer:

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