Question: CD players are produced on an automated assembly line process. The standard cost of CD players is $150 per unit (labor, $30; materials $70; and
CD players are produced on an automated assembly line process. The standard cost of CD players is $150 per unit (labor, $30; materials $70; and overhead, $50). The sales price is $300 per unit.
a. To achieve a 10 percent multifactor productivity improvements by reducing materials costs only, by what percentage must these costs be reduced?
b. To achieve a 10 percent multifactor productivity improvement by reducing; labors costs only; by what percentage must these costs be reduced?
c. To achieve a 10 percent multifactor productivity improvement by reducing overhead costs only; by what percentage must these costs be reduced?
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