Operations Management (INFO 326) Sections 753 & 754 Antony Perez Save Homework: Chapter 1: Group Work - Problems and Exercises - 1 Score: 1 of 3 pts Problem 7 4 of 4 (4 complete) HW Score: 73.33%, 7.33 of 10 pts Question Help 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 percentare scrapped due to qually problems that are identified after they have completed the production process Each guitar sels for $250. Because some of the production process is automated, each guitar only requires 10 labor hours. Each employee works an average of 160 hours per month Labor is paid at per hour materials cost is $40 per guitar and overhead is $4.200 a. The labor productivity ratio for Mack's guitar fabrication shop in 5 195 per hour (Enter your response rounded to two deom places) The multifactor peoductivity ratio for Macke quitar tabrication shop is 113(Enter your response rounded to two decimo placed) b. After some study, the operation managet Darren Funk recommendi I options to improve the company's multoctor productivity Option 1 Increase the sales price by 16 percent Option 2 improve quality so that only 16 percent are defective, or Option 3 reduce labor materials, and overhead costs by 16 percent Mack's guitar fabrication shop decides to implement Darren Funk's option to improve the multfactor productivity the new productivity level would be I (Enter your response rounded to two decimal places) Enter your answer in the answer box and then click Check Answer 3 parts remaining CA