Test: Week 3 -review assessment 1 Submit Test s Question: 1 pt 60116 (15complete
ID: 2332938 • Letter: T
Question
Test: Week 3 -review assessment 1 Submit Test s Question: 1 pt 60116 (15complete) This Test: 16 pts possible Dewer Industries is contomplating some operational changes to reduce Rs overall costs of quality () (Cick the icon to view aditional information) (Click the icon to view the additional information and data ) What is the anticipated Data Table The following data reflects current operations (prior to making the operational chang 102.000 170 79 35 20% Prevention Costs: Current production and sales level (in units) Sales price per unit Current variable cost of making and selling one unit Variable warranty repair costs per unit repaired Appraisal Costs: Choose from any list or enter any number in the input fields and then continueCurrent warranty repair rate of units producedExplanation / Answer
Hey there!!
Let me help you with these Costs !!
Firstly, Prevention costs are those costs which are incurred to avoid or minimize the number of defects in the production.
Appraisal Costs are the costs which are a specific category of quality control costs.
Now let us start with the question:
So, i hope the solution is clear to you now...As per the images attached, only the total quality cost before operational changes information is given.
You will have to claculate quality cost change after operationsl changes because same is not given here.
After that you will see the net gain after incorporating quality control methods and evaluate of the net gain is greater than costs of quality control.
Do let me know if you have any queries.
All the best !!!!
Current production and Sales level 102,000 Sales price per unit $ 170 Variable Cost of Production and Selling $ 79 Variable Warranty Repairs Cost per unit $ 35 Current Warranty repair rate 20%Related Questions
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