A manufacturing company produces 32000 units per month, 78% are free of defects. The percentage of defective
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- A manufacturing company produces 32000 units per month, 78% are free of defects. The percentage of defective units that can be reworked is 25%. The direct manufacturing cost for each unit is 8.69 dollars. It costs 1.74 dollars to rework a defective unit.
- a) Determine the monthly yield.
- b) Compute the manufacturing cost per unit.
- c) Determine the manufacturing cost per unit if the percentage of good-quality units is increased from 78% to 96%.
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
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