Question: solve as soon as possible please Question 3) (35 points) Mack's guitar fabrication shop produces low-cost, highly durable guitars for beginners. Typically, out of the

solve as soon as possible please

Question 3) (35 points) 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 80 percent are considered good enough to sell. The other 15 percent are scrapped due to quality problems that are identified after they have completed the production process. Each guitar sells for $250. Because some of the production process is automated, each guitar produced only requires 8 labor hours. Labor is paid at $17.5 /hour, materials cost is $50/ guitar, and overhead is $5,000. a) Calculate the labor and multifactor productivity ratios. (15 points) b) After some study, the operations manager Darren Funk recommends three options to improve the company's multifactor productivity: (1) increase the sales price by 9 percent, (2) improve quality so that only 12 percent are defective, or (3) reduce labor, material, and overhead costs by 10 percent. Which option has the greatest impact on the multifactor productivity measure? ( 20 points)

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