State how each of the following events would affect the firm’s balance sheet. State whether each change is a source or use of cash.

The smallest defect in a computer chip will render the entire chip worthless. Therefore, tight quality control measures must be established to monitor the chips. In the past, the percentage defective for these chips has been 1.1%. The sample size is 1,000. Determine the upper and lower control chart limits for these computer chips. Use z=3. Solve using QM for Windows or Excel.

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