Each Unit of a Product Requires Eight Components

question 103

Multiple Choice

Each unit of a product requires eight components. The average number of components is 8.25 due to component failure. Purchasing higher quality components can reduce the average number of components to four per unit. The cost per component is $500. What is the reduction in failure costs per unit due to purchasing higher quality components?

• A) $43.75
• B) $125.00
• C) $175.00
• D) $350.00

---

Definitions:

Collective Unconscious

A term coined by Carl Jung, which refers to structures of the unconscious mind shared among beings of the same species.

Human Brain

The central organ of the human nervous system, responsible for processing sensory information, regulating bodily functions, and enabling cognition and emotional responses.

Evolutionary Theory

A scientific explanation regarding the biological changes and speciation events that occur over generations, based on natural selection.

Short-term

Referring to a limited time period, often used in contrast with long-term to describe memory, planning, goals, or investments.