Use the Following Table to Answer the Question(s) Below

question 93

Multiple Choice

Use the following table to answer the question(s) below.

-A manufacturer of FAX machines checks samples of 50 units for functionality at the conclusion of the assembly process. The results of 10 samples are shown. What are the lower and upper 3-sigma control limits?

• A) (-0.01, 0.09)
• B) (-0.01, 0.00)
• C) (-0.01, 0.29)
• D) (0.00, 0.09)
• E) (0.00, 0.29)

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Definitions:

Purchasing Per Unit

The cost associated with buying an individual unit of product or material.

Relevant Costs

Costs that should be considered when making business decisions because they are future costs that differ between alternatives.

Fixed Overhead

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.

Released Facilities

Properties, equipment, or facilities that are no longer under contract or reserved, and are available for use or lease.