The Hobby Shop,a Manufacturer of Toy Airplanes,experienced a Slow Work

Multiple Choice

The Hobby Shop,a manufacturer of toy airplanes,experienced a slow work process at the plant in Norfolk,Virginia.The setup time at one of the workstations was slow compared to the other workstation.An employee reported this issue to the floor manager.The manager proposed a plan to reduce the setup time,but it will cost $75,000.The change is expected to produce an additional 8,200 planes.The managerial accountant reported the following information:

Required:
Compute the increase in the throughput contribution:

A) $110,200
B) $114,250
C) $116,500
D) $118,900
E) $120,540