Each unit of product requires 16 pounds of material. Due to scrap and rework, each unit has been averaging 18 pounds of material. The material costs £6 per pound. If the company wants to reduce nonvalue-added costs by 25 percent next year, the currently attainable standard for material would be
A) 16.00 pounds.
B) 16.80 pounds.
C) 17.50 pounds.
D) 18.00 pounds.

Question

Quizplus · Accepted Answer

The Answer of Each unit of product requires 16 pounds of material. Due to scrap and rework, each unit has been averaging 18 pounds of material. The material costs £6 per pound. If the company wants to reduce nonvalue-added costs by 25 percent next year, the currently attainable standard for material would be
A) 16.00 pounds.
B) 16.80 pounds.
C) 17.50 pounds.
D) 18.00 pounds.

Each Unit of Product Requires 16 Pounds of Material