The EVA Shop, a manufacturer of garage doors, is experiencing a bottleneck in its plant. The manager has identified that setup time is causing the bottleneck. A manager has proposed a plan to reduce setup time at a cost of $15,800. The change will result in 5,000additional garage doors. The selling price per unit is $40 per unit, direct labour costs are $15 per unit, and the cost of direct materials is $12 per unit. Assume all units produced can be sold. The change will result in an net increase in the throughput contribution of K $184,200 None of the other alternatives is correct $140,000 $65,000 $124,200

The EVA Shop, a manufacturer of garage doors, is experiencing a bottleneck in its plant. The manager has identified that setup time is causing the bottleneck. A manager has proposed a plan to reduce setup time at a cost of $15,800. The change will result in 5,000 additional garage doors. The selling price per unit is $40 per unit, direct labour costs are $15 per unit, and the cost of direct materials is $12 per unit. Assume all units produced can be sold. The change will result in an net increase in the throughput contribution of $184,200 None of the other alternatives is correct $140,000 $65,000 $124,200