The Quality Manager for Frozen Pizzas, Inc

question 20

Multiple Choice

The quality manager for Frozen Pizzas, Inc., is concerned about the quality of the lot of several thousand pizzas which his company produced this week, and is now ready to ship. If the cost of replacing a defective pizza once it has been shipped is $5.00, while the cost of complete (100 percent) inspection prior to shipment is $.30 per pizza, what is the point of indifference between complete inspection and shipment without inspection?

• A) 1.67 percent defectives
• B) 3 percent defectives
• C) 5 percent defectives
• D) 6 percent defectives
• E) 16.7 percent defectives

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Definitions:

Zygote

The initial cell formed when a sperm cell fertilizes an egg cell, representing the earliest stage of embryonic development.

Implantation

The process by which a fertilized egg attaches itself to the lining of the uterus, beginning the pregnancy.

Blastocyst

An early stage of embryonic development that consists of a sphere of cells surrounding a fluid-filled cavity and a cluster of cells called the inner cell mass.

Trimester

One of the three approximately three-month periods into which pregnancy is divided.