The sellings price is 200 the company wishes to achieve a 5


Merk, Inc., produces electronics component on an assembly line. The standard cost for the component is $105 (labor $15, materials $60, and other costs $30). The sellings price is $200. The company wishes to achieve a 5% increase in total factor productivity by reducing the materials cost only ( with labor cost and other remaining constant.) By what percentage must materials cost be reduced to achieve this goal?

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Operation Management: The sellings price is 200 the company wishes to achieve a 5
Reference No:- TGS0570046

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