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Taylor Company wants to reduce activity costs by $0.50 per unit. The setup activity for a batch of 100 units of Part BB10 currently costs
Taylor Company wants to reduce activity costs by $0.50 per unit. The setup activity for a batch of 100 units of Part BB10 currently costs $160 per setup. A process engineer proposes reengineering the setup activity so that it takes 70% of the original cost per setup. By how much will this reduce activity costs per unit? Will more cost savings need to be found
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