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What is the Net Benefit per package

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Question - BLP provides high-dollar specialty freight services. The company does its best to ensure that it hires employees of the utmost integrity and further trains them to act competently in carrying out their jobs. Despite this, packages sometimes go missing. Historical records show that 5% of items never get delivered. The typical dollar amount in losses suffered by BLP as a result has been $100 per package. The company is considering adding new tracking devices to the shipments which would hopefully reduce the probability of such losses occurring. The new devices are estimated to cost BLP $0.25 per package but reduce missing packages to only 2%. What is the Net Benefit (Loss) per package if the control is used?

a. $3.25

b. $2.75

c. $3

d. $7

Reference no: EM132681501

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