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

Business

You might also like to view...

While it is important for a database to record every transaction with a customer, recording of interactions that do not relate to a purchase are not necessary

Indicate whether the statement is true or false

Business

Political candidates often hire image consultants who tell them what clothes to wear, how to wear their hair, and how to act in front of a crowd of people

Political candidates who use image consultants to help them market themselves to the voters are using which of the following strategies? A) brand extension B) market development C) diversification D) product improvement E) pure selling

Business

The rise of HRM is associated with growth of which of the following in the employment relationship:

a.collectivism b. Marxism c. individualism d. pluralism

Business

The patent term begins to run from the date the patent is issued

Indicate whether the statement is true or false

Business