A Toy Manufacturer Is Experiencing Quality Problems on Its Assembly

question 20

Multiple Choice

A toy manufacturer is experiencing quality problems on its assembly line.Every defective toy that leaves the factory costs the firm $20.The firm has decided to hire quality inspectors to catch defective toys before they leave the factory. $\begin{array}{c}\begin{array}{c}\text {Number of}\\\text { Inspectors}\\0\\1\\2\\3\\4\\5\\6\\\end{array}\begin{array}{c}\text {Numbei of Defective}\\\text {Toys (per doy) }\\40\\24\\16\\10\\6\\2\\0\end{array}\end{array}$
Given the above information,if each inspector is paid $100 a day,how many inspectors should the firm hire to minimize the total cost of defective toys?

• A)3
• B)4
• C)5
• D)6

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