Ponderosa Paint and Glass makes paint at three plants. It then ships the unmarked paint cans to

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Ponderosa Paint and Glass makes paint at three plants. It then ships the unmarked paint cans to a central warehouse. Plant A supplies 50% of the paint, and past records indicate that the paint is incorrectly mixed 10% of the time. Plant B contributes 30%, with paint mixed incorrectly 5% of the time. Plant C supplies 20%, with paint mixed incorrectly 20% of the time. If Ponderosa guarantees its product and spent $10,000 replacing improperly mixed paint last year, how should the cost be distributed among the three plants?
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Business Statistics A Decision Making Approach

ISBN: 9780133021844

9th Edition

Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry

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