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Burger Doodle is a fast-food restaurant that processes an average of 670 food orders each day. The average cost of each order is $6.25. Four percent of the orders are incorrect, and only 10% of the defective orders can be corrected with additional food items at an average cost of $1.75. The remaining defective orders have to be thrown out. Show transcribed image text * Question 1 Burger Doodle is a fast-food restaurant that processes an average of 670 food orders each day. The average cost of each ide s 6 ●Four percent of e orders are incorrect, and only 10% of the defective orders can be corrected with additional food items at an average cost of $1.75. The remaining defective orders have to be thrown out. Compute the quality-productivity ratio (QPR) for the Burger Doodle restaurant. (Round answer to 2 decimal places, e.g. 2.75.) Quality-productivity ratio (QPR) In order to reduce the number of wrong orders, Burger Doodle is going to invest in a computerized ordering and cash register system. The cost of the system will increase the average order cost by $0.06 and will reduce defective orders to 2.0% Compute the quality-productivity ratio (QPR). (Round answer to 2 decimal places, e.g. 2.75.) Quality-productivity ratio (QPR)

the number of orders per day- 670
the number of incorrect orders- 4%= 670*4%= 26.8 or 29 orders
the total cost of orders= 670*6.25= $4187.5
and the additional cost= 10% of defective orders corrected with $1.75 per each= 29*10%= 3 orders*1.75= $5.25
total cost= 4187.5+5.25= $4192.75
quality productivity ratio= total cost- return cost/ cost of goods sold
= 4187.5- (29*6.25)/ 4187.5= 4006.25/4187.5= 95.6%
 
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