Kal Tech Engineering in Cookeville imports a component part from a reputable com
ID: 1214793 • Letter: K
Question
Kal Tech Engineering in Cookeville imports a component part from a reputable company in India. The part is shipped in boxes of 100. It costs $0.50 to inspect each part and the supplier will not be charged if the part is non-defective. If a defective part is found, the supplier will be charged $5 for each defective part to cover in-house costs in addition to the cost of inspection. In a recent shipment of 5 boxes, the numbers of defectives found were 10, 1, 0, 4, and 3. How much will the supplier be charged for this shipment?
Explanation / Answer
Ans-It costs $0.50 to inspect each part .the supplier will not be charged if the part is non-defective.
If a defective part is found, the supplier will be charged $5 for each defective part to cover in-house costs in addition to the cost of inspection.
In a recent shipment of 5 boxes, the numbers of defectives found were 10, 1, 0, 4, and 3.
The part is shipped in boxes of 100.
So the supplier be charged for this shipment=$100*{(.50*10)+(5*10)+(.50*1)+(5*1)+(.50*4)+(5*0)+(.50*4)+(5*4)+(.50*3)+(5*3)
=$100*(5+50+.50+5+2+2+20+1.5+15)
=$10100.
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