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Onxy Onxy
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7 years ago
The Hobby Shop, a manufacturer of toy airplanes, experienced a slow work process at the plant in Norfolk, Virginia. The setup time at one of the workstations was slow compared to the other workstation. An employee reported this issue to the floor manager. The manager proposed a plan to reduce the setup time, but it will cost $75,000. The change is expected to produce an additional 8,200 planes. The managerial accountant reported the following information:

Selling price per plane    $20
Direct labor cost per plane   $3.50
Direct material cost per plane   $5.50

Required:
Compute the increase in the throughput contribution:
A) $110,200
B) $114,250
C) $116,500
D) $118,900
E) $120,540
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Managerial Accounting: Decision Making and Motivating Performance

Managerial Accounting: Decision Making and Motivating Performance


Edition: 1st
Authors:
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noitulovenoitulove
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Onxy Author
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#2
6 years ago
You're the best tutor I ever had
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2 years ago
thanks.
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