Each Unit of Product Requires 16 Pounds of Material

question 36

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 non-value-added costs by 25 percent next year, the currently attainable standard for material would be

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

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Definitions:

Federal Statutes

Laws passed by the United States Congress and signed by the president.

Threatens

Involves expressing an intention to cause pain, injury, damage, or other hostile action on someone in retribution for something done or not done.

Gasoline Tanker

A specialized vehicle or ship designed for the transportation of gasoline or other fuel products in bulk.

Speeding

The act of driving a vehicle over the legal or safe speed limit prescribed by law.