Question
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 $8,200 . The change will result in 8,000 additional garage doors. The selling price per unit is $18 per unit, direct labour costs are $3 per unit, and the cost of direct materials is $5 per unit. Assume all units produced can be sold. The change will result in an increase in the throughput contribution of ________. $95,800
$135,800
None of the other alternatives is correct
$80,000
$104,000
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