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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
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 ________. Correct Answer $124,200 $140,000 $184,200 None of the other alternatives is correct Incorrect Response $65,000
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