Question: 1. What is the projected impact on the per unit de manufacturing cost of a 50% increase in training costs coupled with a 90% increase in transportation costs? What is the revised cost reduction percentage?
2. A car rental agency is considering a modification in its oil change procedure. Currently, it uses a Type X filter, which costs $5 and must be changed every 7,000 miles along with the oil (5 quarts). Between each oil change, one quart of oil must be added after each 1,000 miles. The proposed filter (Type Y) has to be replaced every 5,000 miles (along with 5 quarts of oil) but does not require any additional oil between filter changes. If the oil costs $1.08 per quart, what is the maximum acceptable price for the Type Y filter?