What will be the total cost of the refill

Assignment Help Business Economics

Reference no: EM131001142

The amount of toothpaste in a tube is normally distributed with a mean of 6.5 ounces and an s.d. of 0.8 ounces. The cost of producing each tube is 50 cents. If in a quality control examination a tube is found to weigh less than 6 ounces, it is to be refilled to the mean value at a cost of 20 cents per tube. On the other hand, if the tube weighs more than 7 ounces, the company loses a profit of 5 cents per tube. If 1000 tubes are examined,

a. How many tubes will be found to contain less than 6 ounces?

b. In that case, what will be the total cost of the refill?

c. How many tubes will be found to contain more than 7 ounces? In that case, what will be the amount of profits lost?

Reference no: EM131001142

Questions Cloud

Discuss what the part of the model of the market : Your first paragraph should discuss what the part of the model of the market gave you the biggest fits (but it cannot be "everything"). In this paragraph, include specifics about what it is that you don't understand as well as you would like. 2. In t..

Forecast rate of growth of the real gross national product : The 10 economic forecasters of a random sample were asked to forecast the rate of growth of the real gross national product (GNP) for the coming year. Suppose the probability distribution of the r.v.—forecast—is normal. The probability is 0.10 that t..

Is this act of civil disobedience a just action why : The closing and ongoing scandal, however, leaves many students with expensive student loans and poor prospects for employment. Is this act of civil disobedience a just action? Why/why not

Do any aspects of that note appear unusual : Examine BA's note 23, dealing with trade receivables. Do any aspects of that note appear unusual to you from the perspective of U.S. GAAP? Explain.

What will be the total cost of the refill : The amount of toothpaste in a tube is normally distributed with a mean of 6.5 ounces and an s.d. of 0.8 ounces. The cost of producing each tube is 50 cents. If in a quality control examination a tube is found to weigh less than 6 ounces, it is to be ..

Consider the impact of religion on your strategic moves : You have been given the daunting mission of opening the first GM dealerships in Iran (now that the sanctions have been removed ). Which cultural factors should you take into account as you prepare to do business there . In particular do any of Hofste..

What is the main difference between a perpetual inventory : What is the main difference between a perpetual inventory system and a periodic inventory system?

Determine the locations for the camera systems : Solve the model formulated in part (a) to determine how many two-way cameras to purchase and where they should have been located.

Solve for profit-maximizing level of monopoly output-price : Considers a monopolist with the following demand curve: P=1000-10Q. The monopolist faces MC=AC=100. Solve for the profit-maximizing level of monopoly output, price, and profits. Suppose a potential entrant is considering entering, but the monopolist ..

User Account

All Pages