Jackson Corporation

Jackson Corporation is a manufacturer of a versatile statistical calculator. The following information is a summary of defective and returned units for the previous year.

Total defective units	1,000
Number of units reworked	750
Number of customer units returned	150
Profit for a good unit	$40
Profit for a defective unit	$25
Cost to rework a defective unit	$10
Cost of a returned unit	$15
Total prevention cost	$10,000
Total appraisal cost	$5,000

1.

Refer to Jackson Corporation. The total quality cost is

Select one:

a. $28,500

b. $15,750

c. $15,000

d. $11,250

2.

Refer to Jackson Corporation. The total rework cost is

Select one:

a. $15,000

b. $7,500

c. $2,500

d. $3,750