Which is true? Prevention costs are $116,000 Appraisal costs total $72.000 Intenal failure costs amount to $186,000 External failure cost ZZ S105,000 None of the above

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter17: Long-term Investment Analysis
Section: Chapter Questions
Problem 1.1CE
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1. Zagart's Zambonis manufactures Zambonis (ice rink machines). Its cost of quality data appears below. Total
manufacturing cost this year was $4.6 million.
Sthou
Engineering tests at supplier's factory
18
Field testing new product
12
Inspection costs
42
Process re-engineering
50
Product redesign
42
Rework
45
Sales returns (at cost)
105
Scrap
22
Training employees on new system
6
Warranty repairs
60
Waste
14
Total
416
Transcribed Image Text:1. Zagart's Zambonis manufactures Zambonis (ice rink machines). Its cost of quality data appears below. Total manufacturing cost this year was $4.6 million. Sthou Engineering tests at supplier's factory 18 Field testing new product 12 Inspection costs 42 Process re-engineering 50 Product redesign 42 Rework 45 Sales returns (at cost) 105 Scrap 22 Training employees on new system 6 Warranty repairs 60 Waste 14 Total 416
Which is true?
Prevention costs are $116,000
Appraisal costs total $72,000
Internal failure costs amount to $186,000
External failure cost ZZ $105,000
None of the above
Transcribed Image Text:Which is true? Prevention costs are $116,000 Appraisal costs total $72,000 Internal failure costs amount to $186,000 External failure cost ZZ $105,000 None of the above
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