Exercise 17-38 Name:
Insert your answers into the gray-shaded cells in column G.
If an answer is incorrect, the word “wrong” will appear.
a. Defective units reworked 595
Cost per unit to rework 18
10,710$
b. Defective units 720
Less units reworked 595
125
Profit per good unit sold 55$
Less profit per defective unit sold 20
×35$
Profits lost by selling defective units 4,375$
c. Number of units returned 85
Cost to handle returned unit 14
1,190$
d. Total failure costs 16,275$
e. Total failure costs 16,275
Prevention cost 27,600
Appraisal cost 8,500
Total quality costs 52,375$
Solution