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StatPro Corporation
StatPro Corporation Is a Manufacturer of a Versatile

Question 26

Multiple Choice

StatPro Corporation
StatPro Corporation is a manufacturer of a versatile statistical calculator.The following information is a summary of defective and returned units for the previous year.
 Total defective units 1,000 Number of units reworked 750 Number of customer units returned 150 Profit for a good unit $40 Profit for a defective unit $25 Cost to rework a defective unit $10 Cost of a returned unit $15 Total prevention cost $10,000 Total appraisal cost $5,000\begin{array}{ll}\text { Total defective units } & 1,000 \\\text { Number of units reworked } & 750 \\\text { Number of customer units returned } & 150 \\\text { Profit for a good unit } & \$ 40 \\\text { Profit for a defective unit } & \$ 25 \\\text { Cost to rework a defective unit } & \$ 10 \\\text { Cost of a returned unit } & \$ 15 \\\text { Total prevention cost } & \$ 10,000 \\\text { Total appraisal cost } & \$ 5,000\end{array}

Refer to StatPro Corporation.The cost of processing customer returns is


A) $9,000.
B) $2,500.
C) $22,500.
D) $2,250.

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