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 total rework cost is
a. $7,500.
b. $15,000.
c. $2,500.
d. $3,750.
A
750 units reworked * $10/unit rework cost = $7,500
You might also like to view...
The societal marketing concept is integral to the practice of
A) integrated marketing communication. B) brand authoring. C) economic logic. D) word-of-mouth. E) corporate social responsibility.
Which form of transportation is the best in terms of dependability, fuel efficiency, and losses and damages?
a. air b. water c. truck d. taxi e. pipeline
The theory behind the variable ratio plan is to
A) passively buy and hold a wide variety of securities. B) time the cyclical movements of the stock market and thereby "buy low and sell high." C) avoid selling any security for a capital gain, and thus indefinitely avoiding the capital gains tax. D) keep the unit cost of the portfolio at a constant level.
Big Data plays an important role in predictive marketing
Indicate whether the statement is true or false