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

Question 35

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 reduction in 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

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