Using the Original Design, a Machine Requires 24 Hours of Setup

Multiple Choice

Using the original design, a machine requires 24 hours of setup time. By redesigning the machine, the setup time is reduced by 35%. The cost per setup hour is $250. What is the new reduced non-value-added cost per setup?

A) $87.50 per setup
B) $2,000.00 per setup
C) $3,900.00 per setup
D) $6,000.00 per setup