Multiple Choice
If the cost of replacing a defective Z-box game once it has been shipped is $5.00, while the cost of complete (100%) inspection prior to shipment is $.20 each, at what point is he indifferent between complete inspection and shipment without inspection?
A) 0% defectives
B) 4% defectives
C) 5% defectives
D) 9% defectives
E) 22% defectives
Correct Answer:
Verified
Correct Answer:
Verified
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