White Tiger Electronics White Tiger Electronics produces CD players using an automated assembly line process. The standard cost of CD players is $150 per unit (labor, $30; materials, $70; and overhead, $50). The sales price is $300 per unit. Use the formulas below to help solve and also answer question d. A. To achieve a 10 percent multifactor productivity improvement by reducing materials costs only, by what percentage must these costs be reduced? b. To achieve a 10 percent multifactor productivity improvement by reducing labor costs only, by what percentage must these costs be reduced? c. To achieve a 10 percent multifactor productivity improvement by reducing overhead costs only, by what percentage must these costs be reduced?

Value of Output: $_______ Value of Input: Labor + Materials + Overhead Productivity 10% productivity improvement -> ___ x % increase (1.10) = ____ Given productivity = ___, and the value of output = ___ we solve for the cost of NEW inputs: Productivity Input or $___ (Round to nearest dollar) The cost of inputs must decrease by ($___ - $___) = $__ a. A $__ reduction in material costs is $__ / $__ = ____% b. A $__ reduction in labor costs is $__ / $__ = ____% c. A $__ reduction in overhead is $__ / $__ = ____% d. Discuss the feasibility of reducing each of these individual costs in order to achieve the 10 percent multifactor productivity improvement.