Modern Inc

question 35

Multiple Choice

Modern Inc.manufactures low-cost tables at a processing cost of $80 per table.The company produces 100 units per day and averages 90% good quality resulting in 10% defective items.Fifty percent of the defective units are reworked prior to shipment to Modern's distribution center.The rework cost is $10 per unit. If the production cost is decreased to $70 the quality productivity ratio (QPR) is

• A)approximately 1.15.
• B)approximately 1.25.
• C)approximately 1.35.
• D)approximately 1.45.

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Definitions:

Dutch Reformed Church

A Protestant Christian denomination originating in the Netherlands during the Reformation, known for Calvinist theology and significant presence in North America.

New Amsterdam

The 17th-century Dutch settlement that later became New York City, reflecting the early colonial history of the United States.

Mercantilism

An economic theory and practice common in Europe from the 16th to the 18th century, emphasizing national economic interests and the accumulation of wealth through a favorable balance of trade.

Colbert

Jean-Baptiste Colbert was a French politician who served as the Minister of Finances of France under King Louis XIV, known for his policies aimed at increasing the wealth and power of France through mercantilism.