A toy manufacturer is experiencing quality problems on its assembly line.Every defective toy that leaves the factory costs the firm $20.The firm has decided to hire quality inspectors to catch defective toys before they leave the factory. $\begin{array}{c}
\begin{array}{c}
\text {Number of}\
\text { Inspectors}\
0\
1\
2\
3\
4\
5\
6\
\end{array}
\begin{array}{c}
\text {Numbei of Defective}\
\text {Toys (per doy)}\
40\
24\
16\
10\
6\
2\
0
\end{array}
\end{array}$
Given the above information,if the cost of each defective toy rises to $50,while inspectors are paid $150 a day,how many inspectors should the firm hire?
A)3
B)4
C)5
D)6

Question

A toy manufacturer is experiencing quality problems on its assembly line.Every defective toy that leaves the factory costs the firm $20.The firm has decided to hire quality inspectors to catch defective toys before they leave the factory. $\begin{array}{c}
\begin{array}{c}
\text {Number of}\
\text { Inspectors}\
0\
1\
2\
3\
4\
5\
6\
\end{array}
\begin{array}{c}
\text {Numbei of Defective}\
\text {Toys (per doy)}\
40\
24\
16\
10\
6\
2\
0
\end{array}
\end{array}$
 Given the above information,if the cost of each defective toy rises to $50,while inspectors are paid $150 a day,how many inspectors should the firm hire?
A)3
B)4
C)5
D)6

Quizplus · Accepted Answer

Hiring 5 inspectors results in the lowest total cost when considering both the cost of defective toys and the cost of inspectors. With 5 inspectors, the firm has only 2 defective toys per day, costing $100 in defects ($50 per defective toy), plus $750 for the inspectors ($150 per inspector), totaling $850. This is lower than any other option when considering the increased cost of defective toys.

A Toy Manufacturer Is Experiencing Quality Problems on Its Assembly