The Omega Shoe Company manufactures a number of different styles of athletic shoes. Its biggest seller is the X Pacer running shoe. In 2008 Omega implemented a quality management programin Business (Education) by vomms
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Problem 1. The Omega Shoe Company manufactures a number of different styles of athletic shoes. Its biggest seller is the X-Pacer running shoe. In 2008 Omega implemented a quality-management program. The company's shoe production for the past three years and manufacturing costs are as follows.
Percent good quality
78% 83% 90%
Only one-quarter of the defective shoes can be reworked, at a cost of 2 apiece.
Question: Compute the manufacturing cost per good product for each of the three years and indicate the annual percentage increase or decrease resulting from the quality-management program.
Manufacturing cost per good product