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A producer of beverage containers wants to ensure that a liquid at 90°C will lose no more than 4°C after 30 minutes. Containers are selected at random and subjected to testing. Historical data shows the standard deviation to be 0.2°C. The quality control team has set 3.5 and 4.5°C as the specification limits. Here are the data from the last 12 containers tested:
a) Make a control chart of these data using the specification limits given.
b) Does the process seem to be in control?
c) What is the value of Cp for the process?
d) Given this value of Cp, what recommendations might you make to the quality control team?
On April 1, 2003, Penny Corporation sells land to its 60%-owned subsidiary, Sahl Corporation, at a $15,000 gain. The land is still held by Sahl on December 31, 2003. What is the effect of the intercompany sale of land on consolidated net income?
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