White tiger electronics produces cd players using an automated assembly line process. the standard cost of cd players is $161161 per unit (labor, $3434; materials, $7474; and overhead, $5353). the sales price is $300300 per unit. a. to achieve a 1414 percent multifactor productivity improvement by reducing materials costs only, one needs to reduce the materials cost by nothing percent. (enter your response as a percent rounded to two decimal places.)

 26.37%

Explanation:

Given that,

Standard cost of CD players = $161 per unit

Labor = $34

Materials = $74

Overhead = $53

Sales price = $300 per unit

Current multi-factor productivity =

                                                      =

                                                      = 1.86

Revised multi-factor productivity after productivity increase by 14 % = 2.1204

Thus given sales price remaining constant at $ 300 and multi-factor productivity of 2.1204

Revised standard cost of CD players =

                                                             = $141.48

Let the corresponding material cost be $m,

Therefore,

Labor cost + m + overhead cost = $141.48

$34 + m + $53 = $141.48

m = $54.48

percentage reduction in material cost =

=

= 26.37%

MATERIAL COST MUST REDUCE BY 26.37%.

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