Problem $561605$:

Do not include anything other than numbers in your responses. For example, do not include comma

or dollar sign in your numbers. As a rule of thumb, keep $2$ decimal places for larger numbers and $3$

decimal places for smaller numbers less than $1.$

Backwoods American, Inc., produces expensive water$-$repellent, down$-$lined parkas. Currently, the

cost of producing each parka is estimated to be $$70.$ This company is planning to produce

approximately $1850$ parkas in the next year. The quality manager of the company has estimated that,

with the current situation, $20$ percent of the parkas produced will be defective and only $45$ percent of

the defective parkas can be reworked. The rework cost is estimated to be $$20.$

The quality management department has suggested to upgrade the sewing machine to reduce the

percentage of defective items. With this upgrade, the cost of producing each parka will be $65$$ and

the percentage of defective items will be $10$ percent. The rework cost and the percentage of defective

items that can be reworked do not change with this upgrade.

Calculate:

Number of units reworked during the next year, with the current situation:

Product yield during the next year, with the current situation:

Effective per unit production cost, with the current situation:

If the company wants the yield to be $2000,$ how many parkas they should plan to produce during the

next year, with the current situation? $1850$

Number of units reworked annually with the upgraded sewing machine:

The Yield during the next year with the upgraded sewing machine:

Effective per unit production cost per with the upgraded sewing machine:

Should the company upgrade their sewing machine? $($Yes$/$No$)$