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CD players are produced on an automated assembly line process. The standard cost of CD players is $150 per unit (labor, $30; materials, $70; and overhead, $50). The sales price is $300 per unit.

a. To achieve a 10 percent multifactor productivity improvement by reducing materials costs only, by what percentage must these costs be reduced?

b. To achieve a 10 percent multifactor productivity improvement by reducing labor costs only, by what percentage must these costs be reduced?

c. To achieve a 10 percent multifactor productivity improvement by reducing overhead costs only, by what percentage must these costs be reduced?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M980209

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