Marlon Audio Company manufactures video tapes. The desired speed of its model SF2000 is 2 inchesper second. Any deviation from this value distorts pitch and tempo, resulting in poor sound quality. Thecompany sets the quality specification to 2 ± 0.25 inch per second because an average customer is likely tocomplain and return the tape if the speed is off by more than 0.25 inch per second. The cost per return is$36.00. The repair cost before the tape is shipped, however, is only $3.00 per tape.Required1. Compute L(x) if x is 2.12 inches per second.2. Estimate the tolerance for the firm to minimize its quality-related cost (loss).

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Marlon Audio Company manufactures video tapes. The desired speed of its model SF2000 is 2 inches
per second. Any deviation from this value distorts pitch and tempo, resulting in poor sound quality. The
company sets the quality specification to 2 ± 0.25 inch per second because an average customer is likely to
complain and return the tape if the speed is off by more than 0.25 inch per second. The cost per return is
$36.00. The repair cost before the tape is shipped, however, is only $3.00 per tape.
Required
1. Compute L(x) if x is 2.12 inches per second.
2. Estimate the tolerance for the firm to minimize its quality-related cost (loss).

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