Question
Year 2012 2013 2014 2015 2016 Manufacturing cost $420,900 $423,400 $424,700 $436,100 $435,500 Manufacturing cost per good The Backwoods American Company produces approximately 35,203 parkas
Year | 2012 | 2013 | 2014 | 2015 | 2016 |
Manufacturing cost | $420,900 | $423,400 | $424,700 | $436,100 | $435,500 |
Manufacturing cost per good |
The Backwoods American Company produces approximately 35,203 parkas annually. The quality-management program the company implemented was able to improve the average percentage of good parkas produced by 2% each year, beginning with 78% good-quality parkas in 2012. Only about 30% of poor-quality parkas could be reworked.
Given the following annual manufacturing costs and a rework cost of $9 per parka, determine the manufacturing cost per good parka for each of the five years. Round your answers to 2 decimal places, the tolerance is +/-0.01.
What is manufacturing cost per good parka?
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