What is the company quality productivity ratio


Problem: Silver Water Motorworks produces small electric motors in lots of 200 with an average yield of 92%. Fifty per cent (50%) of the sub-standard output from the first run through, can be reworked. Direct production costs are $56 per motor with rework costs of $24. What is the company's quality productivity ratio? (Round your final answer to two decimal places) A) 1.69 B) 2.12 C) 1.96 D) 1.87 E) 2.21

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Accounting Basics: What is the company quality productivity ratio
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