Marlon Audio Company manufactures videotapes. The desired speed of its model SF2000 is 7 inches per second. Any deviation from this value distorts pitch and tempo, resulting in poor sound quality. The company sets the quality specification to 7 ± 0.30 inch per second because an average customer is likely to complain and return the tape if the speed is off by more than 0.30 inch per second. The cost per return is $41. The repair cost before the tape is shipped, however, is only $3 per tape.
Required:
1. Compute L(x) if x is 4.12 inches per second.
2. Estimate the tolerance for the firm to minimize its quality-related cost (loss).
(For all requirements, round your intermediate calculations to the nearest whole dollar amount. Round your answers to 4 decimal places.)

Joint cost cheyenne, inc. produces three products from a common input. the joint costs for a typical quarter follow: direct materials $45,000 direct labor 55,000 overhead 60,000 the revenues from each product are as follows: product a $75,000 product b 80,000 product c 30,000 management is considering processing product a beyond the split-off point, which would increase the sales value of product a to $116,000. however, to process product a further means that the company must rent some special equipment costing $17,500 per quarter. additional materials and labor also needed would cost $12,650 per quarter. a. what is the gross profit currently being earned by the three products for one quarter? $answer b. what is the effect on quarterly profits if the company decides to process product a further? $answer