Calculate the Defects Per Million Opportunities (DPMO)given the Following

question 3

Multiple Choice

Calculate the defects per million opportunities (DPMO) given the following:
Blake,owner of Blakester's T-shirt Shoppe,keeps track of customer complaints.For each T-shirt sold,there are four possible complaints: T-shirt shrinks,poor quality,design wears off,and doesn't fit right.Each week,Blake calculates the rate of T-shirt "defects" per total T-shirts sold,and then uses this information to determine his company's DPMO.During the past week,his company sold 1200 T-shirts.His company received 22 customer shrinkage complaints,16 poor quality complaints,12 design wears off complaints,8 doesn't fit right complaints.
Calculate his firm's DPMO.

• A)69,600
• B)0.193
• C)5.8 x 10−⁶
• D)12,083

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Definitions:

Interest Expense

Financial obligations an entity must fulfill for using borrowed money over time.

Issued

Refers to the process whereby a company distributes shares to shareholders, which can include both the initial offering to the public and subsequent offerings.

Premium

An additional amount paid over the normal cost, often associated with insurance or bonds.

Discount

In finance, this is the reduction from the face value of a note, bond, or other financial instrument; in commerce, it refers to a reduction from the regular price.