Modern Inc

Multiple Choice

Modern Inc.manufactures low-cost tables at a processing cost of $80 per table.The company produces 100 units per day and averages 90% good quality resulting in 10% defective items.Fifty percent of the defective units are reworked prior to shipment to Modern's distribution center.The rework cost is $10 per unit. If production is increased to 200 units per day,the quality productivity ratio (QPR) is

A) approximately 1.00.
B) approximately 1.10.
C) approximately 1.20.
D) approximately 1.30.