The Omega Shoe Company manufactures a number of different styles of athletic shoes. Its biggest seller is the X-Pacer running shoe. In 2017 Omega implemented a quality-management program. The company’s shoe production for the past three years and manufacturing costs are as follows: 

Only one-quarter of the defective shoes can be reworked, at a cost of $2 apiece. Compute the manufacturing cost per good product for each of the three years and indicate the annual percentage increase or decrease resulting from the quality-management program.

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Units produced/input Manufacturing cost Percent good quality Year 2018 2017 32,000 34,600 291,000 83% $278,000 78% 2019 35,500 305,000 90%