The Omega Shoe Company manufactures a number of different styles of athletic shoes. Its biggest seller is the X Pacer running shoe. In 2008 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 managementprogram.

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Year 2008 2009 34,600 Manufacturing cost $2780 291000 2010 35,500 Units produced/input 32,000 Percent good quality 78% 83% 90%