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A company knows their operations has statistically a scrap (percentage of failed assemblies or material that cannot be restored) of 10%. The yearly output right

A company knows their operations has statistically a scrap (percentage of failed assemblies or material that cannot be restored) of 10%. The yearly output right now is 72 units.

How much money are you willing to pay to reduce scrap? Assume that the cost of raw material is $c/unit, the selling price is $p/unit, and the cost of reducing scrap by 1% is $r

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