The Big Bites is a fast food restaurant that processes daily an average of 1000 food orders. The average cost of each order is TK16. Four percent of the orders are incorrect, and four percent of the incorrect orders can’t be corrected. The incorrect orders can be corrected with an average cost of TK5.00. The remaining incorrect orders have to be thrown out. Compute the average product cost. (select upto two points after decimal) Answer:

2. In order to reduce the number of incorrect orders, The Big Bites is going to invest in a computerized ordering register system. The cost of the system will increase the average order cost to TK20 and will reduce incorrect orders to 2%. What is the per order net cost effect of this quality-improvement initiative? (select upto two points after decimal)

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