The Backwoods American company produces approximately 20,000 parkas annually. Th

ID: 404484 • Letter: T

Question

The Backwoods American company produces

approximately 20,000 parkas annually. The quality

management program the company implemented was able

to improve the average percentage of good parkas produced

by 2% each year, beginning with 83% good-quality

parkas in 2003. Only about 20% of poor-quality parkas can

be reworked.

a. Compute the product yield for each of the five years.

b. Using a rework cost of $12 per parka, determine the

manufacturing cost per good parka for each of the five

years. What do these results imply about the company

...

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