Question: answer part b for all three options and pick which one is best Mack's guitar fabrication shop produces low cost, highly durable guitars for beginners.
answer part b for all three options and pick which one is best
Mack's guitar fabrication shop produces low cost, highly durable guitars for beginners. Typically, out of the 100 guitars that begin production each month, only 78 percent are considered good enough to sell. The other 22 percent are scrapped due to quality problems that are identfied afler they have completed the production process. Each guitar sells for $240. Because some of the production process is automated, each guitar only requires 8 labor hours. Each employee works an average of 160 hours per month. Labor is paid at $10 per hour, materials cost is $40 per guitar, and overhead is $3,800. a. The labor productivity rato for Mack's guitar tabrication shop is $23.40 per hour. (Enfor your response rounded to two decimal places.) The multifactor productivity ratio for Mack's guitar fabrication shop is (Enter your response rounded to two decimal pleces) b. After some study, the operations manager Darren Funk recommends 3 cptions to improve the company's multifactor productivity: Option 1: increaso the sales price by 15 percent > Option 2. improve quality so that only 15 percont are offective, or > Option 3 , reduce labor, materials, and overhead costs by 15 percent. If Mack's guitar fabrication shop decides to implement Darren Funk's option 1 to improwe the multfactor productivity, the new productivity level would be your response rounded to two decimal places)
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