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