Question: Output from a process contains 0 . 0 1 defective unit. Defective units that go undetected into final assemblles cost $ 2 8 each to

Output from a process contains 0.01 defective unit. Defective units that go undetected into final assemblles cost $28 each to replace. An inspection process, which would detect and remove all defectives, can be established to test these units. However, the inspector, who can test 20 units per hour, is pald $9 per hour, including fringe benefits.
Assume that the line will operate at the same rate (i.e., the current production rate) regardless of whether or not the inspection operation is added.
a-1. Without the inspector, what is the current hourly cost of defects?
Note: Round your answer to 2 decimal places.
Cost per hour 0.28dotsdotsdots
a-2. Should an inspection station be established to test all units based on costs alone?
No
Yes
 Output from a process contains 0.01 defective unit. Defective units that

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