Answered

A machine has three speed settings (low, medium, fast). The low setting produces 110 units with a 90% quality rating.
The medium setting produces 120 units with an 80% quality rating. And the fast setting produces 140 units with a 70% quality rating. If each
unit sells for $20, which setting makes the company the most money in sales when any percentage not meeting quality standards cannot be
sold?

Answer :

Answer:

If each unit sells for $20 then the setting which makes the company the most money is the low setting.

Step-by-step explanation:

i) for low setting the number of units that can be sold is  

= 0.9 [tex]\times[/tex] 110    = 99 units

ii) for medium setting the number of units that cab be sold

= 0.8  [tex]\times[/tex]  120    = 96 units

iii) for fast setting the number of units that can be sold

= 0.7  [tex]\times[/tex]  140 = 98 units

If each unit sells for $20 then the setting which makes the company the most money is the low setting.

The setting that makes the company the most money in sales when any percentage not meeting quality standards cannot be sold is "low", as it makes $1,980.

Income calculation

Given that a machine has three speed settings (low, medium, fast), and the low setting produces 110 units with a 90% quality rating, while the medium setting produces 120 units with an 80% quality rating, and the fast setting produces 140 units with a 70% quality rating, to determine, if each unit sells for $20, which setting makes the company the most money in sales when any percentage not meeting quality standards cannot be sold, the following calculation must be made:

  • 110 x 20 x 0.9 = 1980
  • 120 x 20 x 0.8 = 1920
  • 140 x 20 x 0.7 = 1960

Therefore, the setting that makes the company the most money in sales when any percentage not meeting quality standards cannot be sold is "low", as it makes $1,980.

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