An iPad costs $200 a day to produce and one factory can produce 3000 tablets per day. If the reject rate is 4%, how much could the company save if it cut the defect rate to 2%?

Question

Quizplus · Accepted Answer

At a 4% defect rate, the company loses 4% of 3000 tablets, which is 120 tablets. At a 2% defect rate, the loss is 2% of 3000, which is 60 tablets. The difference is 60 tablets saved. At $200 per tablet, the savings are 60 tablets * $200 = $12,000.

An IPad Costs $200 a Day to Produce and One