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CD players are produced on an automated assembly line process. The standard cost of CD players is $150 per unit (labor $30, materials $70 and overhead $50) the sales price is $300 per unit.
a. To achieve a 10 percent multifactor productivity improvement by reducing materials cost only, by what percentage must these costs be reduced?
b. To achieve a 10 percent multifactor productivity improvement by reducing labor cost only, by what percentage must these costs be reduced?
c. To achieve a 10 percent multifactor productivity improvement by reducing overhead cost only, by what percentage must these costs be reduced?
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