Q5. Mack's guitar fabrication shop produces low-cost, highly durable guitars for beginners. Typically, out of the 100 guitars that begin production each month, only 80 percent are considered good enough to sell. The other 20 percent are scrapped due to quality problems that are identified after they have completed the production process. Each guitar sells for $250. Because some of the production process is automated, each guitar ony requires 10 labor hours. Each employee works an average of 160 hours per month. Labor is paid at $10/ hour, materlals cost is $40/ guitar, and overhead is $4,000. a. Calculate the labor productivity (in dollars per hour) and multifactor productivity. b. After some study, the operations manager Darren Funk recommends three options to improve the company's multufactor productivity: (1) increase the sales price by 10 percent, (2) improve quality so that only 10 percent are defective, or (3) reduce labor, material, and overhead costs by 10 percent. Which option has the greatest impact on multifactor productivity? measure? Q6. Compare the choice of process type (project, job shop, batch, repetitive, or continuous ow) to the concepts of "make to stock" or "make to order