Table 5.11 Factors for Calculating Three-Sigma Limits for the Chart and Chart

question 49

Multiple Choice

Table 5.11
Factors for Calculating Three-Sigma Limits for the Chart and R-Chart
Source: 1950 ASTM Manual on Quality Control of Materials,copyright American Society for Testing Materials.Reprinted with permission.
-Thermostats are subjected to rigorous testing before they are shipped to air conditioning technicians around the world.Results from the last five samples are shown in the table.Calculate control limits for a chart that will monitor performance to target.The correct control limits as (LCL,UCL) are:

• A)(70.46,73.39)
• B)(68.94,74.89)
• C)(69.71,74.14)
• D)(69.80,74.05)

---

Definitions:

Gross Profit

The difference between sales revenue and the cost of goods sold, directly indicating the efficiency of core business activities.

Absorption Costing

A method of inventory costing that includes all manufacturing costs, both variable and fixed, in the cost of a product.

Variable Costing

An accounting method that only includes variable production costs (materials, labor, and overhead) in product cost calculations, excluding fixed costs.

Operating Income

Profit generated from a company's regular business operations, excluding expenses like taxes and interest.