Question

The Backwoods American Company produces approximately 42,938 parkas annually. The quality-management program the company implemented was able to improve the average percentage of good parkas produced by 1% each year, beginning with 76% good-quality parkas in 2012. Only about 6% of poor-quality parkas could be reworked.

Compute the product yield for each of the five years. * Do not enter the percentages as decimals. Do not include the percent sign in your answers. ** Round your answers to the nearest integer, the tolerance is +/-2. Year % Good-quality * Product yield ** 2012 2013 2014 2015 2016 LINK TO TEXT

Given the following annual manufacturing costs and a rework cost of $13per parka, determine the manufacturing cost per good parka for each of the five years. Round your answers to 2 decimal places, the tolerance is +/-0.01. Year 2012 2013 2014 2015 2016 Manufacturing Cost $420,900 $423,400 $424,700 $436,100 $435,500 Manufacturing cost per good parka $ $ $ $ $ SHOW HINT LINK TO TEXT

Which of the following statements most closely describes the results of the quality management program over the five years? quality increased with no effect on cost the increased % of good quality increased product yield, thereby reducing the cost of manufacturing both quality and cost increased the cost of manufacturing initially increased, but as the quality management program took effect, costs began to decrease

Answer 1

Year	Annual production	Multiply: %Good Quality	Good units
2012	42,938	76%	32,633
2013	42,938	77%	33,062
2014	42,938	78%	33,492
2015	42,938	79%	33,921
2016	42,938	80%	34,350
Year	Annual production	Less: Good units	Bad units
2012	42938	32,633	10,305
2013	42938	33,062	9,876
2014	42938	33,492	9,446
2015	42938	33,921	9,017
2016	42938	34,350	8,588
Year	Bad units	Multiply: rework percentage	Rework units	Add: good units	Product yield
2012	10,305	6%	618	32,633	33,251
2013	9,876	6%	593	33,062	33,655
2014	9,446	6%	567	33,492	34,058
2015	9,017	6%	541	33,921	34,462
2016	8,588	6%	515	34,350	34,866

Year	Manufacturing Cost	Rework cost (Rework units*13)	Total cost	Divided by: Product yield	Manufacturing cost per good parker
2012	$ 420,900	$    8,038	$   428,938	33,251	$        12.90
2013	$ 423,400	$    7,703	$   431,103	33,655	$        12.81
2014	$ 424,700	$    7,368	$   432,068	34,058	$        12.69
2015	$ 436,100	$    7,033	$   443,133	34,462	$        12.86
2016	$ 435,500	$    6,698	$   442,198	34,866	$        12.68

Correct answer:

the increased % of good quality increased product yield, thereby reducing the cost of manufacturing

Increased in % Good-quality would be results in product yield increased.

Increased in % Good-quality would be results in cost of manufacturing per good parka decreased.