Each Unit of Product Requires 16 Pounds of Material

question 65

Multiple Choice

Each unit of product requires 16 pounds of material. Due to scrap and rework, each unit has been averaging 18 pounds of material. The material costs £6 per pound. If the company wants to reduce nonvalue-added costs by 25 percent next year, the currently attainable standard for material would be

• A) 16.00 pounds.
• B) 16.80 pounds.
• C) 17.50 pounds.
• D) 18.00 pounds.

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