If a New Machine of a Production Plant Is Functioning

question 120

Short Answer

If a new machine of a production plant is functioning properly,only 1% of the items produced will be defective.Out of the 1,000 items the plant produces on a single day,the approximate probability that no more than 0.2% of the items will be defective if the new machine is indeed functioning properly is .

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Definitions:

Service Revenue

Income earned by a company for the services it provides, rather than for selling physical goods.

Controllable Margin

The portion of profit or income that a manager has direct control over, often excluding fixed costs and expenses.

Profit Center

A part of an organization that is directly responsible for generating its own revenue and profit.

Responsibility Report

A managerial accounting tool that collects financial information to assess the performance of various segments of a business.