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. What is the product yield?
A)80
B)85
C)90
D)95

Question

Quizplus · Accepted Answer

The product yield is the percentage of good quality items produced. 
Good quality items = 100 units per day x 0.90 = 90 units 
Defective items = 100 units per day x 0.10 = 10 units 
Reworked defective items = 10 units x 0.50 = 5 units 
Total good quality items = 90 + 5 = 95 units 
Product yield = (Total good quality items / Total units produced) x 100% 
Product yield = (95 / 100) x 100% = 95% 
Therefore, the best choice is C.