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4 October, 19:11

Flagler Corporation takes eight hours to complete the setup process for a certain electrical component, with the setup cost averaging $150 per hour. If the company's competitor can accomplish the same process in six hours, Flagler's non-value-added cost would be:A. $0. B. $150. C. $300. D. $900. E. $1,200.

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  1. 4 October, 20:35
    0
    Option (c) $300

    Explanation:

    Data provided in the question:

    Time taken to complete the setup process for a certain electrical component

    = 8 hours

    Average setup cost = $150 per hour

    Time taken to complete the process by competitor company = 6 hours

    Now,

    Flagler's non-value-added cost

    = (Difference in time taken by the companies) * Average setup cost

    or

    Flagler's non-value-added cost = (8 - 6) * 150

    or

    Flagler's non-value-added cost = 2 * 150

    or

    Flagler's non-value-added cost = $300

    Hence,

    Option (c) $300
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