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Setup time for a product is 12 hours. A firm that uses JIT and produces the same product has reduced setup time to 1 hour.

Setup time for a product is 12 hours. A firm that uses JIT and produces the same product has reduced setup time to 1 hour. Setup labor is $6 per hour. The non-value-added costs are

a.$12.

b.$66.

c.$72.

d.$6.

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