Ear Us Limited is a manufacturer of pen radios in Montserrat. The company is having too many defective radios coming off the assemble line. The company estimated that sales of the radios fell by US$500 for every defective radio that was sold to the market. The Chief Engineer (CE) has recommended that inspectors be hired to reduce the number of defective radios leaving the assemble line. The CE has made a schedule, showing the number of defective radios that will leave the assemble line if inspectors were to be hired.
INSPECTORS DEFECTIVE RADIOS
0 400
1 360
2 300
3 220
4 120
5 60
6 30
7 25
8 22
9 20
The cost of hiring an inspector is US$2,000 per month. How many inspectors should be hired? Explain.