Question
EXERCISE #3 The original QPR is: (85% x 540 = 459) + (15% x 540 = 81) but these are defective units, the good-quality units
EXERCISE #3 The original QPR is: (85% x 540 = 459) + (15% x 540 = 81) but these are defective units, the good-quality units are only half (50% x 81 = 40.5), thus QPR = 459 + 40.5 (540 x RM78) + (40.5 x RM23) QPR = 499.5/43051.50 x 100 QPR = 1.16
CASE (A): INCREASE PRODUCTION RATE TO 850 UNITS
CASE (B): REDUCE PROCESSING COST TO RM55 AND REWORK COST TO RM18
CASE (C): INCREASE INITIAL GOOD-QUALITY UNITS TO 95%
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Survey of Accounting
Authors: Edmonds, old, Mcnair, Tsay
2nd edition
9780077392659, 978-0-07-73417, 77392655, 0-07-734177-5, 73379557, 978-0073379555
