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Mobile Corporation
Mobile Corporation Is a Manufacturer of Electronic Blood

Question 105

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Mobile Corporation
Mobile Corporation is a manufacturer of electronic blood pressure monitors for
home use.The following is a summary of quality costs for the first year of operations.
 Total defective units 1,500 Number of units reworked 800 Number of customer units returned 200 Profit for a good unit $50 Profit for a defective unit $30 Cost to rework a defective urit $12 Cost of a returned unit $20 Total prevention cost $17,500 Total rppraisal cost $9,500\begin{array}{ll}\text { Total defective units } & 1,500 \\\text { Number of units reworked } & 800 \\\text { Number of customer units returned } & 200 \\\text { Profit for a good unit } & \$ 50 \\\text { Profit for a defective unit } & \$ 30 \\\text { Cost to rework a defective urit } & \$ 12 \\\text { Cost of a returned unit } & \$ 20 \\\text { Total prevention cost } & \$ 17,500 \\\text { Total rppraisal cost } & \$ 9,500\end{array}
Refer to Mobile Corporation.Compute the profit lost by selling defective units not reworked.

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