Airphone, Inc., manufactures cellular telephones at a processing cost of $57 per unit. The company produces an average of 230 phones per week and has a yield of 89% good-quality phones, resulting in 11% defective phones, all of which can be reworked. The cost of reworking
a defective telephone is $15.
a) Compute the QPR. b) Compute the OPR if the company increased the production rate to 330 phones per weck while reducing the processing cost to $45, reducing the rework cost to $10, and
increasing the product yield of good-quality telephones to 95%.