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 the production cost is decreased to $70 the quality productivity ratio (QPR) is

A) approximately 1.15.
B) approximately 1.25.
C) approximately 1.35.
D) approximately 1.45.