Dfective units reworking of units prevention cost

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Reference no: EM13356267

Defective units, reworking of units, prevention cost , appraisal cost given difference of profit earned to find number of defective units.

Variance 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

Reference no: EM13356267

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