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2. Panguitch Company manufactures a component for tablet computers. Weight and durability of the component are the two most important quality characteristics for the tablet
2. Panguitch Company manufactures a component for tablet computers. Weight and durability of the component are the two most important quality characteristics for the tablet manufacturers. With respect to the weight dimension, the component has a target value of 100 grams. Specification limits are 100 grams, plus or minus five grams. Products produced at the lower specification limit of 95 grams lose $20. A sample of five units produced the following weight measures: Unit No. Measured Weight 100 105 110 90 85 During the first quarter, 100,000 units were produced. a) Calculate the loss for each unit. Calculate the average loss for the sample of five. b) Using the average loss, calculate the hidden quality costs for the first quarter
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