Each Unit of a Product Requires 5 Components

Multiple Choice

Each unit of a product requires 5 components.The average number of components is 5.50 due to component failure.Purchasing higher quality components can reduce the average number of components to 5 per unit.The cost per component is $450.Calculate the reduction in failure costs per unit due to purchasing higher quality components.

A) $43
B) $350
C) $175
D) $225
E) $372