Each Unit of Product Requires 16 Kilograms of Material

question 87

Multiple Choice

Each unit of product requires 16 kilograms of material.Due to scrap and rework,each unit has been averaging 18 kilograms of material.The material costs $6 per pound.What would be the currently attainable standard for material if the company wants to reduce non-value-added costs by 25 percent next year?

• A)16.00 kilograms
• B)16.80 kilograms
• C)17.50 kilograms
• D)18.00 kilograms

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