Cascade Paint mixes paint in three separate plants and then

Cascade Paint mixes paint in three separate plants and then ships the unmarked cans to central warehouse. Plant A supplies 50% of the paint, and past records indicate that the paint is incorrectly mixed 10% of the time. Plant B contributes 30% with a defective rate of 5%. Plant C supplies 20% with paint mixed incorrectly 20% of the time. Cascade guarantees its product and spent $10,000 replacing improperly mixed paint last year. How should the cost be distributed among the three plants?

Solution

as A gives 50% and 10% are incorrect

and B gives 30% and gives 5% incorrect

as c gives 20% and gives 20% incorrect

so aacording to the ratio 60% will be given to c and 25% to b and 15% to a

hence c will be 6000

b will be 2500

and c will be 1500