a company makes a $5 profit on each non - faulty product it sells. approximately 2% of the products…

a company makes a $5 profit on each non - faulty product it sells. approximately 2% of the products manufactured are faulty, with no way to discover which ones are faulty before delivery. if replacement - and - repair costs for the faulty products are $100 each, what is the profit per item?\no loss of $15.10\no loss of $15\no profit of $2.90\no profit of $3.00

a company makes a $5 profit on each non - faulty product it sells. approximately 2% of the products manufactured are faulty, with no way to discover which ones are faulty before delivery. if replacement - and - repair costs for the faulty products are $100 each, what is the profit per item?\no loss of $15.10\no loss of $15\no profit of $2.90\no profit of $3.00

Answer

Explanation:

Step1: Calculate profit from non - faulty products

Let's assume 100 products are made. The number of non - faulty products is $100\times(1 - 0.02)=98$. The profit from non - faulty products per product is $5\times(1 - 0.02)=5\times0.98 = 4.9$.

Step2: Calculate cost from faulty products

The number of faulty products is $100\times0.02 = 2$. The cost from faulty products per product is $100\times0.02=2$.

Step3: Calculate net profit per item

Net profit per item = Profit from non - faulty products - Cost from faulty products. So, it is $4.9-2=2.9$.

Answer:

profit of $2.90