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Setup Time for a Product Is 12 Hours

question 31

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Setup time for a product is 12 hours.A firm that uses JIT and produces the same product has reduced setup time by 1 hour.Setup labour is $20 per hour.What would be the currently attainable standard for setup time if the company wants to reduce non-value-added costs by 40 percent next year?


Definitions:

Current Company

The organization or business where an individual is presently employed.

Popular Major

An academic field of study chosen by a large number of students at a college or university.

Computer Science

A field of study that focuses on understanding, designing, and developing algorithms and software that enable computers to perform a wide range of tasks.

Business

The practice of making one's living by engaging in commerce, trade, and services based on the production, distribution, and sale of goods.

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