Acompany 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?

98 % items are non faulty.
2% items are faulty.

Let us assume the company sold 100 items in total.Out of which 2 were faulty.
So the company earned a profit = 98 x 5
                                                   = $ 490
The cost of faulty items = $ 200
So after replacing the profit = $490 - 200
                                            = $ 290
So, The profit for each item would be = 290 / 100 = $ 2.90

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