"Your are a supplier manager for ABC Widgets Inc. Your job is to buy sub$-$components for your company's standard WG$-1001$ widget.

$*$ Your supplier has requested $$250,000$ for new tooling for widget WG$-1001,$ since your usage has increased beyond the current tooling capacity. You ask your Continuous Improvement $($CI$)$ team to work with the supplier to decrease cycle time so that the capacity of the current tooling can meet your demand. In one month the CI team and supplier have been successful in reducing cycle time to meet the anticipated demand... and avoided spending $$250,000$ in new tooling! By doing this, labor has also decreased by $10\%.$ What should be the new price, given this change in labor cost?"