Question

A company produces 13,900 units of which 200 are spoiled units because the​ process, even though carefully and efficiently executed is unable to produce good units​ 100% of the time. Another 70 units are spoiled because machines broke down and there also were operator errors. What is the normal spoilage rate​ (round to two decimal​ places)

Answer 1

In normal conditions, 1.44% of the production will be spoiled.

Step-by-step explanation:

Giving the following information:

A company produces 13,900 units of which 200 are spoiled.

The normal spoilage occurs as a part of the regular operations of an efficient process.

Abnormal spoilage is the result of unusual operating problems (the 70 units).

Normal spoilage= (200/13,900)*100= 1.44%

In normal conditions, 1.44% of the production will be spoiled.