Question

Exercise 18.14. Toy defects. Workers at a factory produce a toy with a defect about once every 4 hours on average. Each toy costs the factory approximately $7 in labor and supplies. a. What is the expected number of toys with defects at the end of a 40-hour work week

Answer 1

Answer: $70

Explanation:

Given that:

Toy with defect is produced once every 4 hours

Cost of labor and supplies incurred for producing a defective toy = $7

Number of defective toys that is expected to be produced in a 40 hour work week :

Number of hours / average hour for producing 1 defective toy

= 40/ 4

= 10 defective toys

Cost incurred for producing 10 defective toys :

($7 * 10) = $70