In Problem 2-6, the Colonial House Furniture Company has investigated the manufacturing process to identify potential improvements

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In Problem 2-6, the Colonial House Furniture Company has investigated the manufacturing process to identify potential improvements that would improve quality. The company has identified four alternatives, each costing $15,000, as follows.
Alternative Quality Improvement
1 ......... Stage 1: 93%
2 .......... Stage 2: 96%. Stage 4: 97%
3 .......... Stage 5: 97%, Stage 6: 98%
4 .......... Stage 2: 97%%
a. Which alternative would result in the greatest increase in product yield?
b. Which alternative would be the most cost effective?

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