The Backwoods American Company produces approximately 20,000 parkas annually. The quality-management program the company implemented was able to improve the average percentage of good parkas produced by 2% each year, beginning with 83% good-quality parkas in 2010. Only about 20% of poor-quality parkas can be reworked. What is the product yield in 2014

2014 Product yield will be 18,560

Explanation:

Calculation of Product Yield from 2010 to 2014

Since it begins with 83% good-quality parkas in 2010 and the percentage of good parkas was produced by 2�ch year which means we would add 2% to each of the year starting from 2011 to 2014

2010:

20,000(.83)= 16,600

20,000-16,600=3,400

3,400(.20)=680

680+16,600= 17,280

2011:

20,000(.85)= 17,000

20,000-17,000=3,000

3,000(.20)=600

600+17,000= 17,600

2012:

20,000(.87)

= 17,400

20,000-17,400

=2,600

2,600(.20)= 520

520+17,400= 17,920

2013:

20,000(.89)= 17,800

20,000-17,800=2,200

2,200(.20)=440

440+17,800= 18,240

2014:

20,000(.91)

= 18,200

20,000-18,200

=1,800

1,800(.20)

=360

360+18,200

2014 Product yield= 18,560

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