With Its Original Design, a Machine Requires 14 Hours of Setup

question 43

Multiple Choice

With its original design, a machine requires 14 hours of setup time.By redesigning the machine, the setup time is reduced by 30%.The cost per setup hour is $325.Calculate the reduction in the nonvalue-added cost per setup.

• A) $1,365 per setup
• B) $1,225 per setup
• C) $450 per setup
• D) $800 per setup
• E) $2,025 per setup

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Definitions:

Sales Forecast

Is an estimation of the sales revenue a company expects to achieve in a certain period of time, based on historical data, market analysis, and current sales trends.

Seasonal Adjustments

The process of altering data to eliminate the influence of seasonal patterns, making trends outside of these patterns more noticeable.

Marketing Mix

The blend of tactical marketing tools, such as product, price, place, and promotion, that a company uses to pursue its marketing objectives in the target market.

Target Markets

A group of people who have a common want or need that your business can satisfy, who are able to purchase your product, and who are more likely to buy from your business.