Question

A company found that they had lost $30,000 in scrap and rework. They had spent $35,000 in prevention-related activities. The ratio of prevention cost to failure cost is ______________.

Answer 1

Answer:

7:6

Explanation:

A company lost $30,000 in scrap and rework

They spent $35,000 in prevention related activities

Therefore the ratio of prevention cost to failure cost can be calculated as follows

= 35,000/30,000

= 7:6

Hence the ratio of the prevention cost to failure cost is 7:6