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The Colonial House Furniture Company manufactures twodrawer oak file cabinets that are sold unassembled through catalogues. The company initiates production of 150 cabinet packages each week. The percentage of good-quality cabinets averages 83% per week, and the percentage of poor-quality cabinets that can be reworked is 60%. a. Determine the weekly product yield of file cabinets. b. If the company desires a product yield of 145 units per week, what increase in the percentage of good-quality products must result? 2-4. In Problem 2-3, if the direct manufacturing cost for cabinets is $27 and the rework cost is $8, compute the manufacturing cost per good product. Determine the manufacturing cost per product if the percentage of good-quality file cabinets is increased from 83% to 90%.
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Why are services important? Why is manufacturing important? What are nonmanufactured goods?
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From the case study, the last TRDSS contract for K though L was signed as a fixed price incentive fee (FPIF) contract. The terms of the contract were as follows, all in US Dollars:
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