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Mike's Guitar Inc. produces low? cost, highly durable guitars for beginners. ?Typically, out of the 100 units that begin production each? month, only 85 percent are considered good enough to sell. The other 15 percent are scrapped due to quality problems that are identified after they have completed the production process. Each guitar sells for ?$270. Because some of the production processes are? automated, each unit only requires 5 labor hours. Labor is paid at ?$12 per?hour, materials cost is ?$40 per? unit, and overhead is ?$11,000.
A) What is the current multifactor productivity ratio? (Enter your response rounded to two decimal places.)
B) What would be the new multifactor productivity ratio if the quality is improved so that only 10% are defective? (Enter your response rounded to two decimal places.)
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Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..
Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.
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