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Answer the following question(s) using the information below.Quick Shop Printing has two workstations, cutting and pasting.The cutting station is limited by the speed of operating the cutting machine.Pasting is limited by the speed of the workers.Pasting normally waits on work from cutting.Each department works an eight-hour day.If cutting begins work two hours earlier than pasting each day, the two departments generally finish their work at about the same time.Not only does this eliminate the bottleneck, but it increases finished units produced each day by 80 units.All units produced can be sold.The cost of operating the cutting department two more hours each day is $800.The contribution margin of the finished products is $3 each.Inventory carrying costs are $0.20 per unit per day.
-What is the change in the daily contribution margin if the change is made?
Transfer of Possession
The act of handing over control or ownership of an item or property from one party to another.
Property Rights
The legal rights to own, use, and dispose of assets including real property and intellectual property.
Purchaser
An individual or entity that buys goods or services for personal use, commercial use, or resale.
Industry Canada
A department of the Canadian government formerly responsible for economic development, innovation, and scientific research, now part of Innovation, Science and Economic Development Canada.
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