Firm has redesigned its production process

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Reference no: EM131275826

A firm has redesigned its production process - it now takes 10 hours for a unit to be made (flow time or throughput time), whereas earlier it took 15 hours. If the process completes one unit per hour on average (the same now and earlier), and each unit is worth $1,500 (on average, from input to finished good stages), what is the reduction in work-in-process value (in dollars)?

Reference no: EM131275826

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