Question
Easy Electronics produces CD players using an automated assembly line process. The standard cost of CD players is $139 per unit (labor, $28; materials, $66;
Easy Electronics produces CD players using an automated assembly 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 improvement by reducing materials costs only, by what percentage must these costs be reduced? b. To achieve a 12 percent multifactor productivity improvement by reducing labor costs only, by what percentage must these costs be reduced? c. To achieve a 12 percent multifactor productivity improvement by reducing overhead costs only, by what percentage must these costs be reduced?
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