Modern Inc

question 15

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 production is increased to 200 units per day,the quality productivity ratio (QPR) is

• A)approximately 1.00.
• B)approximately 1.10.
• C)approximately 1.20.
• D)approximately 1.30.

---

Definitions:

Tax Revenue

The funds governments accumulate from tax collection.

Tax Rates

The percentage at which an individual or corporation is taxed on their income or profits.

High Levels Unemployment

A situation where a significantly large portion of the workforce is not engaged in productive work, typically indicative of economic trouble.

Laissez-Faire Policy

An economic philosophy of free-market capitalism that opposes government intervention.