Multiple Choice
If the cost of replacing a defective pizza once it has been shipped is $5.00, while the cost of complete (100%) inspection prior to shipment is 30 cents per pizza, what is the point of indifference between complete inspection and shipment without inspection?
A) 1.67% defectives
B) 3% defectives
C) 5% defectives
D) 6% defectives
E) 16.7% defectives
Correct Answer:
Verified
Correct Answer:
Verified
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