Using the Original Design,a Machine Requires 12 Hours of Setup

question 67

Multiple Choice

Using the original design,a machine requires 12 hours of setup time.By redesigning the machine,the setup time is reduced by 25 percent.The cost per setup hour is $225.Calculate the reduction in nonvalue-added cost per setup.

• A)$675 per setup
• B)$225 per setup
• C)$450 per setup
• D)$800 per setup
• E)$2,025

---

Definitions:

Empirical Method

Gaining knowledge through the observation of events, the collection of data, and logical reasoning.

Objectivity

The quality of being impartial or neutral, free from personal bias or emotions, particularly in the analysis or presentation of data.

Science

The use of systematic methods to observe the natural world, including human behavior, and to draw conclusions.

Psychology

The scientific study of the human mind and its functions, especially those affecting behavior in a given context.