1 pt 19 of 38 15 This Test 38 pts This work processes and pr

1 pt 19 of 38 (15 This Test: 38 pts This work processes, and produced a report including the data shown below d to in warranty costs -$15,000 more than normal due mainly to material failure. It would cost $18,000 to implement design is costing $5,000 in unnecessary rework costs Estimated amount of lost profits due to dissatisfied customers who turn to the competition is $80,000. O A $18.000 OB. $12,000 O C. Zero O D. $15.000 8

Solution

Answer : A. $18,000

Explanation:

	Prevention Cost	Appraisal Cost	Internal Failure Cost	External Failure cost
a		12000
b				15000
c	18000
d			5000
e				80000
Total	18000	12000	5000	95000