Business Solutions Corporation Business Solutions Corporation is a manufacturer of a versatile statistical calculator. The following information is a summary of defective and returned units for the previous year.
Refer to Business Solutions Corporation. The total failure cost is
A) $15,000.
B) $13,500.
C) $11,250.
D) $8,250.

Question

Business Solutions Corporation Business Solutions Corporation is a manufacturer of a versatile statistical calculator. The following information is a summary of defective and returned units for the previous year.
 Refer to Business Solutions Corporation. The total failure cost is
A) $15,000. 
B) $13,500. 
C) $11,250. 
D) $8,250.

Quizplus · Accepted Answer

To calculate the total failure cost, we need to find the sum of defective and returned units multiplied by their respective costs.

Defective units: 300 * $30 = $9,000 
Returned units: 200 * $45 = $9,000

Adding the two together, we get a total failure cost of $18,000. However, we need to subtract the credit received for returned units, which is 200 * $15 = $3,000.

So, the final total failure cost is $18,000 - $3,000 = $15,000. Therefore, the answer is B) $13,500.

Business Solutions Corporation Business Solutions Corporation Is a Manufacturer of a Versatile