StatPro Corporation
StatPro Corporation Is a Manufacturer of a Versatile

question 90

Multiple Choice

StatPro Corporation
StatPro Corporation is a manufacturer of a versatile statistical calculator.The following information is a summary of defective and returned units for the previous year.
$\begin{array}{ll}\text { Total defective units } & 1,000 \\\text { Number of units reworked } & 750 \\\text { Number of customer units returned } & 150 \\\text { Profit for a good unit } & \$ 40 \\\text { Profit for a defective unit } & \$ 25 \\\text { Cost to rework a defective unit } & \$ 10 \\\text { Cost of a returned unit } & \$ 15 \\\text { Total prevention cost } & \$ 10,000 \\\text { Total appraisal cost } & \$ 5,000\end{array}$

Refer to StatPro Corporation.The profit lost by selling defective units to Pittman Company totals $1,440.The total rework cost for 700 units is $28,000.The difference between the profit earned on a good unit and a defective unit is $12.How many total defective units did StatPro Corporation produce?

• A)120
• B)740
• C)736
• D)820

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