A handgun manufacturer can make its handguns safer by adding a fingerprint recognition device to its products, so only the owner would be able to fire the gun. Adding the fingerprint recognition device costs $145 per handgun. The manufacturer estimates that this will prevent 150 injuries for every 100,000 handguns sold and that, on average, each injury causes $120,000 of harm. The injury cost per handgun is
A) $145.
B) $180.00.
C) $460.
D) $800.

Question

Quizplus · Accepted Answer

The injury cost per handgun is calculated by multiplying the average harm per injury ($120,000) by the number of injuries prevented (150) and then dividing by the number of handguns (100,000). This gives ($120,000 * 150) / 100,000 = $180.

A Handgun Manufacturer Can Make Its Handguns Safer by Adding