Question
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 |
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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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