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.

Year
2008 2009 2010
Units produced/input   32,000   34,600   35,500 
Manufacturing cost      $278,000  291,000  305,000 
Percent good quality      78%      83%      90%


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-management program.