Consider the production process for manufacturing widgets. The first step in the process is Task A which can produce 80% good products. Among the defective products, 60% can be salvaged by reworking on them. The rest of the products are discarded. Both the good and reworked widgets go through Task B which can produce 85% good products. The manufacturing cost for task A is estimated to be $50 per widget. The cost of reworking on the widgets is $25 per widget. Finally, the manufacturing cost of Task B is $35 per widget.

1. How many units should you start with to get a yield of 1000 units?

a. 1177

b. 1280

c. 1228

d. 1000

e. 1340

2. What is the total manufacturing cost, assuming that you are producing a yield target of 1,000 units?

a. $129,360

b. $88,000

c. $109,000

d. $103,488

e. $112,000