Question description
A company makes a product and has no way to determine which ones are
faulty until an unhappy customer returns it. Three percent of the
products are faulty and will cost the company $200 each in customer
service and repairs. If the company does not refund the customer when
repairing the item, how much should the company charge to make a profit
of $2.00 per item?Do I multiply $200 by 0.03 then add $2.00?
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