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.

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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