Phillips Screw Company produces screw fittings. It is determined that T = 1 inch in diameter. Specification limits allow a variation of plus or minus 0.5 inches. Products produced at values beyond the specification limits lose $15. A sample of five units produced showed the following values:

Unit Number	Actual Diameter (Y)
Unit 1	1.2
Unit 2	1.3
Unit 3	0.8
Unit 4	0.9
Unit 5	1.0

1. Refer to Figure 14- What is the cost of hidden loss for production of 50,000 units?

a. $34,722

b. $90,000

c. $108,000

d. $300,000

Answer rating: 100% (QA)

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