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anonymous

  • one year ago

A company makes a $5 profit on each non-faulty product it sells. Approximately 2% of the products manufactured are faulty, with no way to discover which ones are faulty before delivery. If replacement-and-repair costs for the faulty products are $100 each, what is the profit per item?

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  1. triciaal
    • one year ago
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    2% faulty means 98% good let the total manufactured = M, faulty = x and good = y then x + y = M M *5 - 0.02 M*100 = net income

  2. triciaal
    • one year ago
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    profit per item = net income / manufactured how many items were manufactured or what was the income?

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