Lopez Company is experiencing a bottleneck in its plant. Setup time has been identified as...
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Lopez Company is experiencing a bottleneck in its plant. Setup time has been identified as the bottleneck. The production manage following information is available regarding this change: $38,000 8.000 Cost of Reconfiguration Additional unit production and sales Selling price Direct Materials Direct Labor Variable Overhead $13 Which of the following best describes the financial results and whether Lopez Co. should go forward with the reconfiguration? Multiple Choice No change to Operating Income, reject the proposal Decrease Operating Income by $6,000, reject the proposal. Oo oo Increase Operating Income by $30,000, accept the proposal Increase Operating Income by $2,000, accept the proposal
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