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Morgan Company produced 15,000 good units and 1,850 spoiled units for the month of December. Under normal operating conditions, Morgan expects a defective rate of

Morgan Company produced 15,000 good units and 1,850 spoiled units for the month of December. Under normal operating conditions, Morgan expects a defective rate of 8%. How many units would Morgan consider normal and abnormal spoilage?

A.1,348 normal spoilage, 502 abnormal spoilage

B.1,200 normal spoilage, 650 abnormal spoilage

C.148 normal spoilage, 1702 abnormal spoilage

D.All 1,850 spoiled units are abnormal spoilage

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