North Platt Machinery Company manufactures a shaft that must fit inside a sleeve. The firm has just received an order of 53,000 units from Southernstar Exploration Company for $48 per unit. North Platt can manufacture the shaft at $18 per unit. Southernstar desires the diameter of the shaft to be 1.278 cm. The diameter of the shaft must not be less than 1.253 cm in order to fit properly inside the sleeve. To be able to insert the shaft into a sleeve without the use of force, the diameter cannot be larger than 1.303 cm. A defective shaft is discarded and a replacement has to be shipped via express freight to locations around the world. North Platt estimates that the average cost of handling and shipping a replacement shaft will be approximately $38. Shown below are the diameters from a sample of 100 shafts manufactured during a trial run:

Diameter# of UnitsDiameter# of UnitsDiameter# of Units

1.235 2 1.276 71.295 3

1.243 3 1.277 81.296 2

1.253 4 1.278 18 1.297 5

1.261 3 1.279 91.301 3

1.265 3 1.280 61.303 3

1.273 4 1.283 31.307 2

1.275 7 1.291 31.323 2

1. The expected loss (total quality cost)per unit,E[L(x)], from this process.(Do not round intermediate calculations. Round your answer to 2 decimal places.)

2. The diameter tolerance that should be set for the manufacture of the shaft.(Do not round intermediate calculations. Round your answer to 4 decimal places.)