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 Refer to StatPro Corporation. The profit lost by selling defective units not reworked is
a. $25,000.
b. $15,000.
c. $18,750.
d. $3,750.
D
250 units not reworked * $15 incremental difference = $3,750
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