The measurement is made as a deviation from the target, thus the requirements are 0 +/- 2 units. The current process averages 0 with a standard deviation of 1. Units less than -2.0 are scrapped at a cost of $5 per unit. Units greater than 2.0 are reworked at a cost of $1 per unit. 

What is your estimate of the total cost of scrap and rework (per 100 units) based on the current process?

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