StatPro Corporation 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 rework cost is:

$7,500.

$15,000.

$2,500.

$3,750.

b. The cost of processing customer returns is

$9,000.

$2,500.

$22,500.

$2,250.

c. The total failure cost is

$15,000.
		$13,500.
		$11,250.
		$8,250.