Question

A company makes a product and has no way to determine which ones are faulty until an unhappy customer returns it. Three percent of the products are faulty and will cost the company $200 each in customer service and repairs. If the company does not refund the customer when repairing the item, how much should the company charge to make a profit of $2.00 per item? $6.00 $6.19 $8.00 $8.25

Answer 1

Answer: $8.00

Explanation:

Given: Percent of products which are faulty=3%=0.03

Cost of each faulty product =$200

Let x be the company charge to make the profit .

According to the question,

`x-0.03*200=2.00\\\Rightarrow\ x-6.00=2.00\\\Rightarrow\ x=2.00+6.00\\\Rightarrow\ x=$8.00`

Hence, the company should charge $ 8.00 to make a profit of $2.00 per item.

Answer 2

(x) - (0.03)(200) = 2.00
Let x be the company charge to make the profit

solving for x gives 8$