Mobile Corporation
Mobile Corporation Is a Manufacturer of Electronic Blood

Essay

Mobile Corporation
Mobile Corporation is a manufacturer of electronic blood pressure monitors for
home use.The following is a summary of quality costs for the first year of operations.
$\begin{array}{ll}\text { Total defective units } & 1,500 \\\text { Number of units reworked } & 800 \\\text { Number of customer units returned } & 200 \\\text { Profit for a good unit } & \$ 50 \\\text { Profit for a defective unit } & \$ 30 \\\text { Cost to rework a defective urit } & \$ 12 \\\text { Cost of a returned unit } & \$ 20 \\\text { Total prevention cost } & \$ 17,500 \\\text { Total rppraisal cost } & \$ 9,500\end{array}$
Refer to Mobile Corporation.Compute the profit lost by selling defective units not reworked.