An example of an internal failure cost would be warranty cost

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An example of an internal failure cost would be warranty cost.

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Q: The three-person crew worked their way through the neighborhood, testing doorknobs and windows and slipping past security systems like a team of ninjas. Of course, they weren't ninjas, but a crew of brazen burglars, hoping to grab cash and other valuables to fence at the next level of their supply chain. Fortune smiles on them on this day in the prestigious Edmond Oaks neighborhood. A lawn maintenance crew is creating a tremendous racket mowing and edging lawns, which completely drowns out the sounds of breaking glass. Details of the day's haul appear in Table C. a. What is the multifactor productivity? b. What is the labor productivity? Table C: The Haul ITEM SALES PRICE LABOR MATERIAL Krugerrand $1,500 1 hr $2 Flat screen TV $250 .25 $1 $200 cash $200 .05 $45 Lava lamp $5 .15 $25 Rolex watch $180 .10 $1 Workers are paid at a flat rate of 20% of the sales price of the merchandise. Materials cost represents the cost of gasoline and surgical gloves, and overhead is 20% of the sales price of the merchandise.

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