Mobile Corporation
Mobile Corporation Is a Manufacturer of Electronic Blood

question 73

Essay

Mobile Corporation
Mobile Corporation is a manufacturer of electronic blood pressure monitors for
home use.The following is a summary of quality costs for the first year of operations.
$\begin{array}{ll}\text { Total defective units } & 1,500 \\\text { Number of units reworked } & 800 \\\text { Number of customer units returned } & 200 \\\text { Profit for a good unit } & \$ 50 \\\text { Profit for a defective unit } & \$ 30 \\\text { Cost to rework a defective urit } & \$ 12 \\\text { Cost of a returned unit } & \$ 20 \\\text { Total prevention cost } & \$ 17,500 \\\text { Total rppraisal cost } & \$ 9,500\end{array}$
Refer to Mobile Corporation.Compute the profit lost by selling defective units not reworked.

Understand the calculation of interest on promissory notes.

Differentiate between various types of receivables and their recording.

Identify the roles of involved parties in a promissory note transaction.

Recognize the importance and methods of maintaining accounts receivable information.

---

Definitions:

Selling Entity

The business or individual that is transferring goods or services to a buyer in a transaction.

Performance Obligation

An agreement within a contract to deliver a product or service to a client.

Transaction Price

The total amount of consideration agreed upon between parties in the transaction process for transferring a good, service, or financial asset.

Contract

A legally binding agreement between two or more parties.