Question

Kal Tech Engineering in Cookeville imports a component part from a reputable company in India. The part is shipped in boxes of 100. It costs $0.50 to inspect each part and the supplier will not be charged if the part is non-defective. If a defective part is found, the supplier will be charged $5 for each defective part to cover in-house costs in addition to the cost of inspection. In a recent shipment of 7 boxes, the numbers of defectives found were 10, 1, 0, 4, 5, 3,and 3. How much will the supplier be charged for this shipment

Answer 1

The supplier would be charged $130

Explanation:

Total number of defective parts in the shipment of 7 boxes = 10+1+0+4+5+3+3 = 26 defective parts

Charge for 1 defective part = $5

Charge for 26 defective parts = 26 × $5 = $130