A company produces screw fittings. It is determined that T = 1 inch in diameter. Specification limits allow a variation of plus or minus 0.5 cm. Products produced at values beyond the specification limits lose $10. A sample of five units produced showed the following values:
$$\begin{array} { c c }
\text { Unit Number } & \text { Actual Diameter (Y) } \
\text { Unit 1 } & 1.2 \
\text { Unit 2 } & 1.3 \
\text { Unit 3 } & 0.8 \
\text { Unit 4 } & 0.9 \
\text { Unit 5 } & 1.0
\end{array}$$
-Refer to the figure.What is the cost of hidden loss for production of 50,000 units?

Question

A company produces screw fittings. It is determined that T = 1 inch in diameter. Specification limits allow a variation of plus or minus 0.5 cm. Products produced at values beyond the specification limits lose $10. A sample of five units produced showed the following values:
$$\begin{array} { c c } 
\text { Unit Number } & \text { Actual Diameter (Y) } \
\text { Unit 1 } & 1.2 \
\text { Unit 2 } & 1.3 \
\text { Unit 3 } & 0.8 \
\text { Unit 4 } & 0.9 \
\text { Unit 5 } & 1.0
\end{array}$$
-Refer to the figure.What is the cost of hidden loss for production of 50,000 units?

Quizplus · Accepted Answer

The Answer of A company produces screw fittings. It is determined that T = 1 inch in diameter. Specification limits allow a variation of plus or minus 0.5 cm. Products produced at values beyond the specification limits lose $10. A sample of five units produced showed the following values:
$$\begin{array} { c c } 
\text { Unit Number } & \text { Actual Diameter (Y) } \
\text { Unit 1 } & 1.2 \
\text { Unit 2 } & 1.3 \
\text { Unit 3 } & 0.8 \
\text { Unit 4 } & 0.9 \
\text { Unit 5 } & 1.0
\end{array}$$
-Refer to the figure.What is the cost of hidden loss for production of 50,000 units?

A Company Produces Screw Fittings -Refer to the Figure