After reviewing the new activity-based costing system that Janis McGee has implemented at Port Arthur manufacturing can reduce production costs by reducing the time spent of machine setup. He has spent the last month working with employees in the plant to change over the machine more He plane to produce 109,000 units of J25P and 44.500 units of J40X in the first quarter. He that with his more efficient setup the J25P and the J40X products by 34 percent