Easy Electronics produces CD players using an automatedassembly line process. The standard cost of CD players is$139 per unit (labor, $28; materials, $66; and overhead, $45).The sales price is $275 per unit. a. To achieve a 12 percent multifactor productivity improve-ment by reducing materials costs only, by what percent-age must these costs be reduced?b. To achieve a 12 percent multifactor productivity improve-ment by reducing labor costs only, by what percentagemust these costs be reduced?c. To achieve a 12 percent multifactor productivity improve-ment by reducing overhead costs only, by what percent-age must these costs be reduced?
Easy Electronics produces CD players using an automatedassembly line process. The standard cost of CD players is$139 per unit (labor, $28; materials, $66; and overhead, $45).The sales price is $275 per unit. a. To achieve a 12 percent multifactor productivity improve-ment by reducing materials costs only, by what percent-age must these costs be reduced?b. To achieve a 12 percent multifactor productivity improve-ment by reducing labor costs only, by what percentagemust these costs be reduced?c. To achieve a 12 percent multifactor productivity improve-ment by reducing overhead costs only, by what percent-age must these costs be reduced?
Management, Loose-Leaf Version
13th Edition
ISBN:9781305969308
Author:Richard L. Daft
Publisher:Richard L. Daft
Chapter10: Designing Organization Structure
Section: Chapter Questions
Problem 1EE
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Easy Electronics produces CD players using an automated
assembly line process. The
$139 per unit (labor, $28; materials, $66; and overhead, $45).
The sales price is $275 per unit.
a. To achieve a 12 percent multifactor productivity improve-
ment by reducing materials costs only, by what percent-
age must these costs be reduced?
b. To achieve a 12 percent multifactor productivity improve-
ment by reducing labor costs only, by what percentage
must these costs be reduced?
c. To achieve a 12 percent multifactor productivity improve-
ment by reducing overhead costs only, by what percent-
age must these costs be reduced?
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