A High-Volume Toy Producer Typically Concentrated Its Quality Control Efforts

Multiple Choice

A high-volume toy producer typically concentrated its quality control efforts on inspecting finished product and catching defective toys before they are shipped. As the new quality control manager, you believe that finding the root cause of defects is important. The factory produces $200,000 each day in toys and has a defect rate of 10%. If you cut that defect rate in half, you could save the factory what amount each day?

A) $10,000
B) $20,000
C) $100,000
D) $120,000