8. The Glass Shop, a manufacturer of large windows, is experiencing a bottleneck in its plant. Setup time at one of its workstations has been identified as the culprit. A manager has proposed a plan to reduce setup time at a cost of $72,000. The change will result in 8,000 additional windows. The selling price per window is $18, direct labour costs are $8 per window, variable overhead is $2 per window and the cost of direct materials is $5 per window. Assume all units produced can be sold. Which of the following explains the best approach that should be taken in this situation?

a. The proposal should be rejected because incremental costs exceed incremental benefits by $32,000.

b. The proposal should be accepted as it provides a net benefit of $32,000

c. The proposal should be rejected because incremental costs exceed incremental benefits by $48,000

d. The proposal should be accepted as it provides a net benefit of $72,000