Steps:

Variable Cost

Added

Yield

$1$

$$15\mathrm{.}00$

$92\%$

$2$

$$9\mathrm{.}00$

$97\%$

$3$

$$11\mathrm{.}00$

$94\%$

$1.$ What is the variable cost of a good unit at the end of the process with current yields?

a$.$ $$35\mathrm{.}00$

b$.$ $$37\mathrm{.}28$

c$.$ $$4\mathrm{.}54$

d$.$ $$39\mathrm{.}45$

$2.$ What is the cost per unit of poor quality?

a$.$ $$4\mathrm{.}45$

b$.$ $$2\mathrm{.}28$

c$.$ $$39\mathrm{.}45$

d$.$ $$2\mathrm{.}13$

$3.$ What is the ratio of the cost per unit of poor quality to variable cost per unit at $100\%$ yields?

a$.13\mathrm{.}82\%$

b$.88\mathrm{.}71\%$

c$.12\mathrm{.}97\%$

d$.90\mathrm{.}32\%$

$4.$ If you start with enough materials to produce $1200$ units and sell good units for $$52,$ what is the contribution at current yields?

a$.$ $$12,633$

b$.$ $$17,113$

c$.$ $$20,400$

d$.$ $$15,060$