Durant Co. manufactures glass bottles for dairy products. The contribution margin is $0.12 per bottle. Durant just received notification that one of its orders for 105,000 bottles contained misprinted labels and thus had to recall and reprint the bottle labels. If it will cost $0.06 per bottle to reprint the labels and $1,000 to reship the bottles, what will the net contribution margin be after the recall?

The link between volume of production and the cost of building manufacturing operations is particularly important in industries characterized byanswers: process innovations. product manufacturing. product innovation. process manufacturing.

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This exercise illustrates that poor quality can affect schedules and costs. a manufacturing process has 130 customer orders to fill. each order requires one component part that is purchased from a supplier. however, typically, 3% of the components are identified as defective, and the components can be assumed to be independent. (a) if the manufacturer stocks 130 components, what is the probability that the 130 orders can be filled without reordering components? (b) if the manufacturer stocks 132 components, what is the probability that the 130 orders can be filled without reordering components? (c) if the manufacturer stocks 135 components, what is the probability that the 130 orders can be filled without reordering components?