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In: Statistics and Probability

A manufacturing company produces 32,000 units per month, 78% are free of defects. The percentage of...

A manufacturing company produces 32,000 units per month, 78% are free of defects. The percentage of defective units that can be reworked is 25%. The direct manufacturing costs for each unit is $8.69. It costs $1.74 to rework a defective unit.
a) Determine the monthly yield.
b) Compute the manufacturing (product) cost per unit.
c) Determine the manufacturing cost per unit if the percentage of good-quality units is increased from 78% to 96%.

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orchestra answered 2 years ago
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