Assuming That the MR Corporation Has an Inventory of 200

question 10

True/False

Assuming that the MR Corporation has an inventory of 200 defective motors costing $450,000 to produce and $150,000 to repair,the repaired units can be sold for $425,000.The company receives an offer to purchase these motors for $325,000 before repairing them.The company's decision should be to sell the motors at the offered price.
The $450,000 production costs are sunk costs and therefore irrelevant to the decision.Net proceed from the sale of repaired units is $275,000 (Proceeds from sale of reworked units $425,000 - relevant costs for repair $150,000)compared to the offer to purchase for $325,000.Since the offer price is more than the net proceed from the sale of repaired units,the decision should be to sell the motors at the offered price.

Identify primary causes of time lost to tardiness and absenteeism and strategies to mitigate these issues.

Understand the importance of error prevention over detection in quality control processes.

Define productivity and recognize activities that improve quality and productivity.

Understand the limitations and scope of quality-control programs in detecting defects.

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Definitions:

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The concentration of glucose present in the blood, crucial for energy production in the body.

Placebo

is a substance or treatment with no therapeutic effect given to a participant in a study as a control to test the efficacy of another treatment, or used to elicit a psychological benefit through the belief in the treatment.

Metronome

A device used by musicians that marks time at a selected rate by giving a regular tick sound.

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A substance made from dried and pulverized meat, used as nutritional supplement or in cooking.