Sunny Day MachineSunnyDayMachine

Shop is a manufacturer of golf carts. Peter Cranston, the plant manager of

Sunny Day MachineSunnyDayMachine,

obtains the following information for Job

#2222

in August

20202020.

A total of

2626

units were started, and

66

spoiled units were detected and rejected at final inspection, yielding

2020

good units. The spoiled units were considered to be normal spoilage. Costs assigned prior to the inspection point are

$ 1 comma 400$1,400

per unit. Assume that the

66

spoiled units of

Sunny Day MachineSunnyDayMachine

Shop's Job

#2222

can be reworked for a total cost of

$ 1 comma 700$1,700.

A total cost of

$ 8 comma 400$8,400

associated with these units has already been assigned to Job

#2222

before the rework.