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

StatPro 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

a. The total quality cost is:

$15,000.

15,750

28,500

11,250

b. he profit lost by selling defective units to Pittman Company totals $1,440. The total rework cost for 700 units is $28,000. The difference between the profit earned on a good unit and a defective unit is $12. How many total defective units did StatPro Corporation produce?

120

740

736

820

c. The profit lost by selling defective units not reworked is

25,000

15,000

18,750

3,750

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