The Glass Shop, a manufacturer of large windows, is experiencing a bottleneck in its plant

ACCOUNTING

Multiple Choice

The Glass Shop, a manufacturer of large windows, is experiencing a bottleneck in its plant. Setup time at one of its workstations has been identified as the culprit. A manager has proposed a plan to reduce setup time at a cost of $72,000. The change will result in 8,000 additional windows. The selling price per window is $18, direct labor costs are $3 per window, and the cost of direct materials is $5 per window. Assume all units produced can be sold. The change will result in an increase in the throughput contribution of

a. $104,000

b. $80,000

c. $32,000

d. $8,000

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