Perk IncManufactures and Sells Coffee Makers Required:
A

question 166

Essay

Perk Inc.manufactures and sells coffee makers.A popular consumer magazine has recently evaluated coffee makers and has ranked Perk's coffee makers as being of 'poor quality'.As a result,Perk's management team has begun to analyse all costs associated with their coffee makers in more detail,and has compiled the following data:
$\begin{array}{lr} \text { Scrap costs } &\$15000\\ \text { Quality training } &50000\\ \text { Warranty claims } &90000\\ \text { Rework costs } &18000\\ \text { Inspection of incoming materials} &12000\\ \text { Product quality audits } &25000\\ \text {Statistical process control } &20000\end{array}$

Required:
A. What are total prevention costs?
B. What are total appraisal costs?
C. What are total internal failure costs?
D. What are total external failure costs?

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