W 5 # # X 3 2.4 Which machine would you now recommend based on the "Lowest Total Cost" Method? a) Both machines are about equal in Total Cost therefore, which one is selected doesn't matter b) Cera Engineering as its Total Cost is less than the Flowfold machine's and that difference is profit c) Flowfold as its Total Cost is less than the Cera Engineering's machine's and that difference is profit d) Don't pick either the Cera Engineering or Flowfold machines 2.5 In this problem, we are only considering the Total Cost (Fixed Cost + Variable Cost) so explain why this approach is appropriate and eliminates the need to use Profit (Profit = Revenue- Total Cost) for decision-making? a) Revenue has no bearing on Profit b) Profit = Total Cost plus Revenue and Total Cost is larger c) Total Cost = Profit plus Revenue d) Sales volume is the same for both machines hence Revenue is the same for both machines therefore Total Cost is a surrogate for Profit It 3. You are the Northeast Regional Quality Specialist for the Safelite AutoGlass Company, Inc, based in its Mount Kisco NY location at 379 North Bedford Road. The Safelite Corporate Headquarters is concerned about windshield selection and installation errors being made at this location so you have been asked to assess the quality of these two processes. You randomly select 10 of the 90 Technicians and examine the files for the last 50 customers executed by each of the 10 with the following results: Technician # 1 # of Defective Files 3 Fraction Defective 0.06 22 23456789 0 0.00 8 0.16 1 0.02 1 0.02 4 0.08 0.04 0.04 3 0.06 10 1 0.02 3 nd