The Omega Shoe Company manufactures a number of dif-ferent 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 pro-duction for the past three years and manufacturing costs are as follows. Only one-quarter of the defective shoes can be reworked, at acost of $2 apiece. Compute the manufacturing cost per goodproduct for each of the three years and indicate the annual percentage increase or decrease resulting from the quality-management program. Year 2008 2009 2010Units produced/input 32,000 34,600 35,500Manufacturing cost $278,000 291,000 305,000Percent good quality 78% 83% 90%
The Omega Shoe Company manufactures a number of dif-ferent 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 pro-duction for the past three years and manufacturing costs are as follows. Only one-quarter of the defective shoes can be reworked, at acost of $2 apiece. Compute the manufacturing cost per goodproduct for each of the three years and indicate the annual percentage increase or decrease resulting from the quality-management program. Year 2008 2009 2010Units produced/input 32,000 34,600 35,500Manufacturing cost $278,000 291,000 305,000Percent good quality 78% 83% 90%
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question
The Omega Shoe Company manufactures a number of dif-
ferent 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 pro-
duction for the past three years and
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-
management program.
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%
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