Compute the manufacturing cost

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Reference no: EM13313333

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.

Year
2008 2009 2010
Units produced/input 32,000 34,600 35,500
Manufacturing cost $278,000 291,000 305,000
Percent good quality 78% 83% 90%

Only one-quarter of the defective shoes can be reworked, at a cost of $2 apiece.

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.

Reference no: EM13313333

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