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Improvement by reducing the standard costs

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CD players are produced on an automated assembly line process. The standard costs of CD players are labor - $50 per unit; materials - $90 per unit; and overhead - $40 per units. The sales price is $300 per unit. In order to achieve a 25% multifactor productivity improvement by reducing the standard costs, how much should these costs be reduced?

Reference no: EM13156969

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