Question: Output from a process contains 0 . 0 4 defective unit. Defective units that go undetected into final assemblies cost $ 2 3 each to
Output from a process contains defective unit. Defective units that go undetected into final assemblies cost $ each to replace. An detect and remove all defectives, can be established to test these units. However, the inspector, who can test units per hour, is paid $ per hour, including fringe benefits. Assume that the line will operate at the same rate ie the current production rate regardless of whether or not the inspection operation is added.
Without the inspector, what is the current hourly cost of defects? please round to two decimal places
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