Reference no: EM132265676

T-Dairy has changed the packaging of its choco-drink so that less raw materials are consumed. Unfortunately, the change has led to difficulties in filling the cartons with drinks. Both under-filling and overfilling of the 64 ounce cartons is occurring. Overfilling leads to sticky cartons and under-filling leads to visibly less drinks in the carton; both defects lead to unhappy customers. To avoid defects, management believes all cartons should be filled with at least 63.7 and no more than 64.3 ounces. From sampling, it is determined that the current filling process is normally distributed with a mean of 64.1 ounces and standard deviation of 0.2 ounces. Management believes a very simple fix can "center" the process within the user specifications so that the mean is 64.0 ounces and the standard deviation remains unchanged at 0.2 ounces. If each defective carton is estimated to cost the business $0.10 and the annual volume of cartons sold is 300,000 per year, how much value (i.e reduction in defect costs) can be created annually by centering the process within user specifications? (Round your answer to the nearest penny)