Indira runs quality control in a factory that makes bikes. Their defect rate is 10%, which costs the company $3000 per day. She calculates that cutting the defect rate in half would save the company what amount per day?

Question

Quizplus · Accepted Answer

Currently, the company is losing $3000 per day due to the 10% defect rate. If the defect rate is cut in half, the new defect rate would be 5%, and the cost of defects would also be cut in half to $1500 per day. Therefore, cutting the defect rate in half would save the company $1500 per day, which is option B.

Indira Runs Quality Control in a Factory That Makes Bikes